The Bombay Stock Exchange (BSE) on February 01, 2024, notified regarding the Pre-Trade Risk Control - Enhancements to Market price order in the Commodity Derivatives segment.
The Trading members are hereby requested to note the following enhancements which shall be implemented for market price orders (day as well as IOC orders) –
• Market price orders shall be rejected in a contract that has not traded for the day, i.e. LTP has not been discovered in that contract.
• This price range of X% higher/ lower than LTP, shall also be subject to minimum absolute value in rupee terms.
• If price of opposite side orders is beyond the MPI price range, then the entire incoming market price order (or remaining order quantity if it is partially executed) shall be cancelled.
• If there are no opposite side orders, then the entire incoming market price order (or remaining order quantity if it is partially executed) shall be converted to a passive limit price order at the best price on same side of the order book, based on price-time priority.
• If there are no pending orders on either side of the order book, then the entire incoming market price order (or remaining order quantity if it is partially executed) shall be converted to a passive limit price order at the day’s LTP of that contract.
• The above-mentioned MPI range validation shall also be applicable for order modification requests i.e., pending limit price order being modified to a market price order.
• Multi-legged orders with ‘market price’ condition for all contracts shall not be allowed. However, multi-legged orders with ‘limit price’ condition shall continue to be available.
The above-mentioned enhancements shall be made effective in the live environment for trading from Monday, February 05, 2024, onwards.
[Notice No. 20240201-5]
