Mark your calendars for a significant event happening at the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on May 18, 2024! In a proactive move to ensure seamless operations, even in the face of unexpected disasters, the NSE and BSE are gearing up for a special live trading session.
Here's a detailed breakdown in simpler terms:
Purpose of the Special Trading Session:
- The main objective is to evaluate the readiness of Market Infrastructure Institutions (MIIs) to handle unforeseen events that may disrupt regular operations.
- It serves as a practice session to test the efficiency of disaster recovery measures and how quickly operations can be restored in case of emergencies.
Trading Timings and Segments:
- The special session is divided into two segments. The first part will see normal trading activities from 9:15 AM to 10:00 AM, with a pre-opening session from 9:00 AM to 9:08 AM.
- The second segment, conducted from the disaster recovery site, will commence at 11:30 AM and conclude at 12:30 PM.
- The post-closing session will be from 12:40 PM to 12:50 PM.
Price Bands and Order Placing
- During the session, all securities, including those with derivative products, will have a maximum price band of 5% to prevent sudden and drastic price fluctuations.
- Securities already in the 2% or lower price band will continue to adhere to their respective limits.
- All the AMO orders placed on 17th May 2024 will be executed on 18th May in the first session.
- AMO orders can be placed from 10:00 AM to 11:15 AM, which will be executed in the second session. Also, AMO orders placed after 1:00 PM will be executed on 21st May 2024.
- No Intraday orders can be placed on the day.
- ESIP will not be processed during the day.
Key Instructions for Members:
- Members are urged to ensure the consistency of their systems for a smooth transition to the disaster recovery site.
- To avoid confusion, any pending orders will be cancelled before trading resumes at the DR site.
- Participants should be prepared for potential delays, particularly those who rely on high-speed trading systems.
- Regular updates and communication will be provided through the NSE/BSE website, and messages will be broadcast on the trading system.
Settlement and Clearing:
- Despite the special session, all trades executed will result in settlement obligations, ensuring that buying and selling activities are finalized.
- Details regarding risk management, clearing, and settlement will be communicated separately by the clearing corporations.
- Saturday, 18th May 2024, will be a settlement holiday. Thus, the trades that took place on 17th and 18th May will be settled on Tuesday 21st May 2024. Monday, 20th May 2024, is a holiday for the General Elections.
The special live trading session on May 18, 2024, underscores the NSE and BSE's commitment to maintaining market stability and resilience, even in challenging circumstances. It's a proactive step towards ensuring the integrity and continuity of stock market operations.
You can also check out NSE Circular and BSE Circular for further references.
