NSE considers gradual extension of trade timings: Report 

NSE considers gradual extension of trade timings: Report 

Nifty

The National Stock Exchange (NSE) in consultation with its broker members is considering a gradual extension of the trade timings, which is currently set at six hours and 15 minutes of the regular market, Mint reported quoting a top official of India’s largest stock market.

"We have already started the consultation with broker members on how to increase trade timings at least in a more convenient way for office-goers in the evening," Mint quotedAshishkumar Chauhan, Managing Director and Chief Executive Officer of the NSE,as saying.

The report added that the SEBI, India's capital markets regulator, must accept the idea before it can be expanded to include derivatives transactions.

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There is currently a pre-open session from 9am to 9:15am, followed by the normal trade timing period for stocks on NSE and BSE from 9:15am to 3:30pm.

The trading hours for commodity derivatives on the exchanges are 9 am to 11:30 pm and 11:55 pm (in winters), as many commodities are mirror contracts of those traded on the US CME bourse.

The trading hours for currency derivatives on the exchanges are 9 am to 5 pm.

But an increase in trade timings would mean an additional cost burden on small brokers, reports said.

Derivatives markets - key focus of time change

According to the report in Mint, In order to boost interest in its derivatives business, the Bombay Stock Exchange switched the expiration day of its Sensex and Bankex derivatives contracts from Thursday to Friday in mid-May.

The modification was made in order to avoid competing with its larger rival, NSE, whose weekly and monthly derivatives contracts for the Nifty and Bank Nifty expire on Thursday.

But soon after BSE’s action, NSE declared that it would keep Thursday for Nifty expiration while moving its weekly and monthly Bank Nifty expiration to Friday. This was seen as an attempt to restrict competition.

In late June, NSE changed its decision following negotiations between the two parties. The Bank Nifty expiry has now been requested to be moved to Wednesday. This gave rise to market rumors that SEBI was pressuring NSE to reverse its decision to avoid concentration risk.

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