The National Stock Exchange (NSE) on July 19, 2023, issued a notification regarding Pre-Trade risk controls Validation for Stop Loss Limit Order Entry.
For the purpose of maintaining orderly trading, efficient risk management, and price discovery, the exchange has a strong framework for managing risk. It also regularly reviews and puts into practice various pre-trade risk control procedures. Review and improvements are necessary to increase the pre-trade risk control procedures for preventing aberrant orders given the present maturity and development of the market and to ensure a favourable environment for all market players.
Based on its experience and feedback from regulators and market participants, the Exchange may periodically examine the aforementioned mechanism and various relevant aspects.
Members are urged to take note that the mentioned changes will go into force in Live mode on August 7, 2023, and will be testable on August 5, 2023, during the mock.
Members should trade properly and prudently because doing so could lead to regulatory actions, inquiries, and investigations. This includes trading away from normal prices, misleading other traders, or interfering in regular trading.
[Notification No. NSE/CM/57613]
