The Bombay Stock Exchange (BSE) on June 26, 2024, notified regarding the pre-trade risk control - Additional enhancements to Market price order in the Equity Derivatives segment.
The following has been stated namely: -
• It is in reference to partial modification to the Exchange circular no. 20240205-29, dated February 05, 2024, and Exchange Circular No. 20240405-40, dated April 05, 2024.
• It states that market price orders shall also be validated against the prevailing LPP (limit price protection) range for the respective contracts, in addition to the existing validation of the applicable MPI (market price impact) range.
• It states that market price orders shall be allowed to be traded up to a price range which shall be determined based on the following –
o Buy orders shall be allowed to be traded up to a minimum of higher MPI and higher LPP limit values
o Sell orders shall be allowed to be traded up to a maximum of lower MPI and lower LPP limit values
• It states that the enhancements shall be made available in the simulation environment of the Equity Derivatives segment for the trading members to test the same.
• It states that these enhancements to market price orders shall be made applicable for live trading from Monday, July 01, 2024.
• It states that to facilitate a smooth roll-out, the changes shall be available for testing during the mock trading session on Saturday, June 29, 2024.
[Circular no. - 20240625-42]
