IN A BID TO REDUCE VOLATILITY IN STOCK PRICES, A NEW SYSTEM OF TRADING IS BEING INTRODUCED FROM MONDAY. BSE AND NSE , THE TWO PREMIER STOCK EXCHANGES IN THE COUNTRY, WILL START A 15-MINUTE PRE-OPEN SESSION FOR THE 50 STOCKS THAT COMPRISE THE NIFTY INDEX FROM MONDAY.
THE PRE-OPEN MARKET, CHRISTENED CALL AUCTION SESSION, WILL OPERATE BETWEEN 9 AM AND 9.15 AM ON BOTH — THE CASH AS WELL AS THE DERIVATIVES SEGMENTS — OF THE TWO EXCHANGES. THE PRE-SESSION TRADING IN THESE STOCKS IS MAINLY AIMED AT REDUCING VOLATILITY IN STOCK PRICES BECAUSE OF DEVELOPMENTS THAT TOOK PLACE AFTER THE CLOSE OF TRADING THE PREVIOUS SESSION.
IN THE NEW SYSTEM, TRADING ORDERS WILL ACCUMULATE DURING THE FIRST SEVEN MINUTES, THEN THE MARKET WILL CLOSE ANYTIME DURING THE EIGHTH MINUTE OF TRADE. THIS WILL BE FOLLOWED BY A ONEMINUTE BREAK IN TRADE AND THEN, IN THE NEXT FOUR MINUTES, TRADES WILL BE MATCHED AND CONFIRMATIONS SENT TO BROKERS . BETWEEN 9.12 AM AND 9.15 AM, ORDERS WHICH ARE NOT EXECUTED WILL BE MOVED TO THE REGULAR MARKET.
IN THE PRE-SESSION CALL AUCTION, THE PRICES OF 50 STOCKS CAN RISE OR FALL A MAXIMUM OF 20% FROM ITS LAST CLOSE. THE REGULAR TRADING FOR THESE STOCKS, ALONG WITH THOSE OTHER THAN THESE 50, WILL NOW START AT 9.15 AM AND CLOSE AT 3.30 PM
THE PRE-OPEN MARKET, CHRISTENED CALL AUCTION SESSION, WILL OPERATE BETWEEN 9 AM AND 9.15 AM ON BOTH — THE CASH AS WELL AS THE DERIVATIVES SEGMENTS — OF THE TWO EXCHANGES. THE PRE-SESSION TRADING IN THESE STOCKS IS MAINLY AIMED AT REDUCING VOLATILITY IN STOCK PRICES BECAUSE OF DEVELOPMENTS THAT TOOK PLACE AFTER THE CLOSE OF TRADING THE PREVIOUS SESSION.
IN THE NEW SYSTEM, TRADING ORDERS WILL ACCUMULATE DURING THE FIRST SEVEN MINUTES, THEN THE MARKET WILL CLOSE ANYTIME DURING THE EIGHTH MINUTE OF TRADE. THIS WILL BE FOLLOWED BY A ONEMINUTE BREAK IN TRADE AND THEN, IN THE NEXT FOUR MINUTES, TRADES WILL BE MATCHED AND CONFIRMATIONS SENT TO BROKERS . BETWEEN 9.12 AM AND 9.15 AM, ORDERS WHICH ARE NOT EXECUTED WILL BE MOVED TO THE REGULAR MARKET.
IN THE PRE-SESSION CALL AUCTION, THE PRICES OF 50 STOCKS CAN RISE OR FALL A MAXIMUM OF 20% FROM ITS LAST CLOSE. THE REGULAR TRADING FOR THESE STOCKS, ALONG WITH THOSE OTHER THAN THESE 50, WILL NOW START AT 9.15 AM AND CLOSE AT 3.30 PM
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