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Rediff.com  » Business » Is the NSE ready for extended trading hours?

Is the NSE ready for extended trading hours?

May 10, 2018 09:19 IST

'We will have to get together internally and figure how this will happen.'
'Suffice to say, it is feasible and will be done in a logical way.'


Photograph: Danish Siddiqui/Reuters

"Everywhere in the world, cash markets are open for a limited time frame. So, we don't expect the cash markets to get extended beyond the current trading hours," National Stock Exchange Managing Director and CEO Vikram Limaye tells Shrimi Choudhary and Sachin Mampatta.

Your first reaction to the Sebi move to extend trading hours till late night from October 1.

Good for the market. We have been saying this was needed from the hedging perspective. It will help take care of event risks, as it will provide an opportunity for investors to hedge when other markets are open.

So, good for investors.

Does the settlement process need to be tweaked, as banks shut in the evening?

The commodities market is open till that time.

We will have to figure the settlement mechanism.

Maybe a rolling batch process, where up to a certain point the trades will get cleared and beyond a certain point on the following day.

 

Will you use this opportunity to extend timings for the cash segment?

This approval is only for the derivatives segment.

For the cash segment, you have an enabling provision for a couple of more hours.

Look at the global benchmarks.

Everywhere in the world, cash markets are open for a limited time frame. So, we don't expect the cash markets to get extended beyond the current trading hours.

Will the exchanges face any opposition from brokers who are concerned about higher costs and manpower?

That might have been the case for the cash market. I don't think it will be so much of an issue for the derivatives market.

Based on the feedback we have got from our trading members, they are quite happy with this announcement.

How will NSE implement the extended trading hours?

We will have to get together internally and figure how this will happen. Suffice to say, it is feasible and will be done in a logical way.

We will have to take care of the concerns of everyone involved in the process.

How soon will you approach Sebi?

We have time up to October 1 to launch this. That is enough time. We will got to Sebi well in advance and be ready from October 1.

Shrimi Choudhary and Sachin Mampatta
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