The National Stock Exchange (NSE) on June 16, 2023, issued a circular regarding the Pre-Trade risk controls and Validation for Stop Loss Limit Order Entry.
The members are requested to note the below additional validation shall be applicable for SL-Limit Order:
• Incoming SL-Limit orders having a difference between the trigger price and limit price greater than the permissible limit shall be rejected by the Exchange.
• The formulation applicable for the aforesaid validation shall be as follows:
• If Abs (limit price - trigger price) > 'X%* trigger price'. The exchange shall reject the order.
• The value of 'X% trigger price' shall be subjected to a minimum absolute range.
• The aforesaid validation shall also be applicable for SL-Limit order modification requests.
• Following error code shall be generated on the rejection of order entry/order modification request: 16448- The difference between the limit price and trigger price is beyond the permissible range.
The members are requested to note that the changes shall be made effective in Live from July 03, 2023, and shall be available for mock testing on July 01, 2023.
[Circular No. 23/2023]
