“NSE May Extend Trading Hours for Stock Derivatives”
The National Stock Exchange (NSE) is considering introducing extended trading hours for equity derivatives, allowing Indian traders to react faster to global events.
In response to the growing demand for extended trading hours and the need for quicker reactions to global developments, the National Stock Exchange (NSE) is reportedly considering an evening trading session for equity derivatives. While the NSE currently operates from 9:15 am to 3:30 pm, the proposed extended hours would allow trading from 6 pm to 9 pm, with the possibility of extending it further to 11:30 pm.
This move comes as the NSE aims to provide Indian traders with the flexibility to respond promptly to global market shifts, especially those occurring outside regular trading hours. It is also seen as an effort to retain trading activity within Indian exchanges, as concerns grow over large traders, including proprietary desks and hedge funds, shifting their operations to competitors like GIFT City, where trading operates around the clock.
Sriram Krishnan, Chief Business Development Officer at NSE, mentioned in an interview that there’s a general consensus in favor of extending trading hours for equity derivatives. While the NSE has submitted its proposal to the market regulator, the Securities and Exchange Board of India (SEBI), it’s still awaiting approval.
The proposed evening session is expected to begin with index options and futures, such as Nifty and Bank Nifty, before potentially incorporating single stock options and futures. Notably, the expiry days and timings for all products will remain unchanged.
Krishnan hinted at the possibility of further expansions, saying, “Possibly, going forward we can either extend the timeline from 9 pm to 11.55 pm or we could add more products during the 6-9 pm session.”
However, this move has its critics among market participants, particularly leading brokers. Some believe that extending trading hours may not necessarily result in increased trading volumes. Instead, they argue it could lead to higher operational costs and employee dissatisfaction, making it a contentious topic within the industry.
The NSE’s proposal is under consideration by SEBI, and its approval could usher in a new era of trading flexibility for Indian investors, potentially reshaping the country’s financial markets.
Sources By Agencies
About The Author
