The Bombay Stock Exchange (BSE) on February 20, 2024, notified regarding the enhancements to the Market price order in the Equity segment.
The Trading members are hereby requested to note the following enhancements which shall be implemented for market price orders:
• Market price orders shall be rejected in a security that has not traded for the day, i.e. LTP has not been discovered in that security.
• 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 security.
• The MPI range validation shall also be applicable for order modification requests i.e. pending limit price order being modified to a market price order.
• MPI range for market price orders shall not be applicable for block deal session, Pre-Open session, Special Pre-Open session for IPO and Relist securities (SPOS), Periodic Call Auction sessions (PCAS), Post-Closing session and Auction session.
The Members may refer to the enclosed Annexure for illustrations of the above-stated measures.
The enhancements shall be made effective in the live environment for trading from Monday, March 18, 2024, onwards. To facilitate the roll-out, the changes shall be available during the mock trading session on Saturday, March 16, 2024.
[Notice No. 20240220-34]
