SEBI Extends Trading Hours for Equity Derivatives till 11:55 PM

The Securities and Exchange Board of India (SEBI) announced that Indian Stock exchanges will now trade in Equity Derivatives from 9:00 am to 11:55 pm. It is a landmark decision.

SEBI took this step to enable integration of trading of various segments of securities market at the level of exchanges.

Now, the Exchanges who are willing to extend trade timings need prior approval from SEBI and submit framework for risk management and settlement process with SEBI.

Since derivatives trading started in 2000, the trading timings of both futures and options (F&O) and cash market have remained linked.

Extended time for equity derivatives will be applicable from 1st October 2018.

With this decision, the timings will be in line with commodity markets and international markets. Currently, trading time is set for over 6 hours from 9:15 am to 3:30 pm.

Globally, the derivative exchanges are already following the extended trading hours. The introduction of the extended hours is a positive development and will bring Indian markets in line with international market and Indian commodity derivative markets.

With new trading timing in Indian stock markets, it will align Indian stock market with their foreign counterparts. Meanwhile, it will also help to avoid trading volume loss as this new trading timing will allow investor to take opportunities when other markets are working.

Investors will also get an opportunity to trade or hedge portfolios systematically. However, it’s unclear if the move will spur volumes and contain volatility.

As per sources, the NSE and BSE will soon approach SEBI for the new trading timing.

However, SEBI had granted the trading hours up to 5 pm for the cash segment. But none of the exchanges chose to extend hours due to resistance from brokers.

The extended timings will lead to higher costs and manpower, which could weigh on the near-term profitability of brokers.

 

The Securities and Exchange Board of India (SEBI) announced that Indian Stock exchanges will now trade in Equity Derivatives from 9:00 am to 11:55 pm. It is a landmark decision.

SEBI took this step to enable integration of trading of various segments of securities market at the level of exchanges.

Now, the Exchanges who are willing to extend trade timings need prior approval from SEBI and submit framework for risk management and settlement process with SEBI.

Since derivatives trading started in 2000, the trading timings of both futures and options (F&O) and cash market have remained linked.

Extended time for equity derivatives will be applicable from 1st October 2018.

With this decision, the timings will be in line with commodity markets and international markets. Currently, trading time is set for over 6 hours from 9:15 am to 3:30 pm.

Globally, the derivative exchanges are already following the extended trading hours. The introduction of the extended hours is a positive development and will bring Indian markets in line with international market and Indian commodity derivative markets.

With new trading timing in Indian stock markets, it will align Indian stock market with their foreign counterparts. Meanwhile, it will also help to avoid trading volume loss as this new trading timing will allow investor to take opportunities when other markets are working.

Investors will also get an opportunity to trade or hedge portfolios systematically. However, it’s unclear if the move will spur volumes and contain volatility.

As per sources, the NSE and BSE will soon approach SEBI for the new trading timing.

However, SEBI had granted the trading hours up to 5 pm for the cash segment. But none of the exchanges chose to extend hours due to resistance from brokers.

The extended timings will lead to higher costs and manpower, which could weigh on the near-term profitability of brokers.

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