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    What is RTCM?

    RTCM refers to the Reversal Trade Cancellation Mechanism (RTCM). Effective January 13, 2024, RTCM will be implemented in the Equity Derivatives segment. It aims to identify and cancel reversal trades that meet specific conditions during intraday trading. These are transactions between two parties (identified by their PANs or CP Codes) that are matched in a security/ contract amongst each other and reversed subsequently (e.g.: first leg is where PAN “A” is the buyer and PAN “B” is the seller and second leg where PAN “B” is the buyer and PAN “A” is the seller). This mechanism is introduced to prevent any trades that create artificial volume without legitimate market intent. Such practices can distort price discovery and mislead market participants.

    Why is RTCM introduced in Equity Derivatives? What will be the impact on your open positions if your trade comes under RTCM? What is the impact on your limits if your trade comes in RTCM? When can I square off RTCM trades? Why is my account shifted to Square off mode? Does RTCM apply for fresh or existing open positions? When I will be moved out of square off mode and able to place fresh order? What will happen if my GTT order is cancelled under RTCM? How will I know my trade is cancelled by Exchange under RTCM?