Signage for the CNX Nifty Index is displayed as employees walk through the atrium of the National Stock Exchange of India Ltd. (NSE) building in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

NSE Asks Clients To Get Ready For Derivative Trading Till 11:55 P.M.

The National Stock Exchange Ltd. has asked its clients to get ready for late-evening derivatives trading from October.

India’s largest exchange plans to start extended trading subject to approval from the regulator some time in October, it said in an email to clients. The bourse shared a “skeletal framework” for trading till 11.55 p.m.—nearly seven hours more than now.

According to the framework:

  • There shall be two trading sessions with a break of about 60-90 minutes.
  • The first session would be between 9:15 a.m. and 3:30 p.m.

The First Session

The exchange would allow trading to continue from the previous day’s second (evening) session. That’s because it doesn’t want its members to settle trades in the night. Moreover, there would be thin trading on most days in the night, said a senior NSE official on condition of anonymity.

Trade modification will be allowed till 4:00 p.m. and all orders outstanding after 3:30 p.m. would be cancelled, as is the case now. More details would follow in a separate circular, the exchange said.

The Second Session

It would extend from 5:00 p.m. to 11:55 p.m. The exchange would issue a separate circular to confirm the timings after getting approval from the regulator. The second session will start with fresh orders.

  • On the last day of the contract— the last Thursday of the month—next month’s contracts would be eligible to trade.
  • The exchange will allow trade modification till 11:55 p.m. All outstanding orders after that would be cancelled.
  • The exchange will allow all trade records to continue in next morning’s session.

Extended trading will be accompanied by the NSE’s entry into products currently available in commodity derivative exchanges as the regulator has allowed unified exchanges starting October.