NSE Extends F&O Market Closing Time to 3:40 PM Starting August 3 The National Stock Exchange (NSE) has announced an extension of the normal market closing time for the equity derivatives segment (F&O) by 10 minutes, effective from August 3. The F&O segment will now close at 3:40 PM instead of the previous 3:30 PM. This adjustment aims to align the derivatives market with the new closing auction session (CAS) introduced in the cash segment. The change is part of a broader effort to harmonize the operations of the cash and derivatives markets. The CAS, which began rolling out earlier, involves a short trading period at the end of the day where market participants submit buy or sell orders to determine a fair closing price for securities. This mechanism is designed to ensure continuity and smooth transitions between the cash and derivatives markets during the end-of-day trading process. Under the revised schedule, the closing auction session will run from 3:15 PM to 3:35 PM, divided into three phases. From 3:15 PM to 3:20 PM, the transition from the continuous trading session (CTS) to CAS occurs, with reference prices calculated based on trades from 3:00 PM to 3:15 PM. From 3:20 PM to 3:25 PM, both market and limit orders can be placed. From 3:25 PM to 3:30 PM, only limit orders are allowed, with no modifications or cancellations of market orders. The order entry session may randomly close between 3:28 PM and 3:30 PM. The CAS also introduces new rules for price bands and pre-trade risk controls, which will apply to the equity derivatives segment. These measures aim to enhance market integrity and ensure seamless transitions during the end-of-day process. Additionally, the operational changes include notifications from NSE about adjustments to the operating price range for stock futures contracts.#nse #sebi #futures_options #closing_auction_session #cash_segment
