Why Indian Stock Exchanges Are Holding Special Trading Session On Saturday
NSE & BSE will hold a special live trading session on May 18, switching to their disaster recovery sites. Traders should note possible trade cancellations.
New Delhi: The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) are gearing up for a special live session on May 18, 2024. During this session, both exchanges will perform an intra-day switch-over to their respective disaster recovery sites.
Trading members have been informed by the stock exchanges about this special live trading session, scheduled for Saturday, May 18, 2024. The session will involve several Market Infrastructure Institutions (MIIs) including BSE, NSE, ICCL, NCL, CDSL, NSDL, and MSEI. The MIIs will conduct an intra-day switch-over to their respective disaster recovery sites during this session.
It's important to note that this special trading session will be applicable to the Equity and Equity Derivatives segments only.
According to a notice from the Bombay Stock Exchange, the switch-over will be conducted gracefully from the primary site. This decision follows specific discussions with the Securities and Exchange Board of India (SEBI) and their Technical Advisory Committee. The purpose is to assess the preparedness of MIIs to handle any unforeseen event impacting their operations and to ensure that operations can be restored from the Disaster Recovery (DR) Site within the stipulated Recovery Time Objective.
Brokerage firm Zerodha has provided further details, stating that NSE & BSE are conducting this special session for live trading on Saturday, May 18, 2024, in the Equity & F&O segments. This marks the first time that the stock exchanges are switching trading sites from their primary sites to the disaster recovery (DR) site during a live trading session.
Zerodha also highlighted important considerations for traders during this special session. According to the brokerage firm, there is a possibility of executed trades getting canceled during the transition phase of switching from the primary to the DR site. In such a scenario, closed positions during the first session will be reopened, after which traders will need to exit the position again in the second session.
Moreover, intraday trading will be restricted during the special Saturday trading session due to anticipated lower trading volumes. Since volumes are expected to be lower, the spreads could be wider, potentially leading to losses during auto square offs. Additionally, the exchanges have imposed a 5 per cent lower price band for all stocks, including those that trade in the derivative segment.
This special live trading session is a proactive measure taken by the stock exchanges to ensure operational readiness and resilience in the face of unforeseen events, demonstrating their commitment to maintaining the integrity and efficiency of the Indian capital markets.
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