However participation is not widespread as many market participants including PDs are yet to start using the product. PDs, as expert investors are expected to actively use the available products to hedge. This would perhaps call for PDs warehousing more securities for market making. The interest rate risk that this may entail needs to be mitigated through greater participation in the IRF market.
Why this is not happening needs serious soul searching. (iii) Market Intelligence: Debt management operations of the sovereign, especially large scale borrowings can be accomplished only with active engagement with all stakeholders.