The National Stock Exchange (NSE) on December 17, 2024, issued the notification regarding the Reversal Trade Cancellation Mechanism (RTCM) in Equity Derivatives Segment.
The following has been stated namely: -
• Exchange will monitor transactions on an intraday basis, between a pair of PANs (PAN will be replaced with CP Codes wherever applicable). As a new trade takes place between a pair of PANs, the quantity of the trade will get aggregated to either of the legs (First Leg or Second Leg). The breach thresholds with respect to all the following parameters, the trade will be eligible for cancellation.
o Combined traded quantity of a pair of PANs for both legs to the extent of reversal, compared with market gross traded quantity in the scrip on that day till that point in time.
o Reversal Ratio in the scrip, of the pair of PANs at that point in
o Square off difference of a pair of PANs at that point in time in a scrip
o Reversal quantity (both first and second leg) of a PAN till that point in time in the scrip compared with total quantity traded by each PAN in the pair of PANs in the scrip for that day till that point of time.
• Client Code Modification during market hours resulting in reversal of trade, shall also be cancelled as a part of RTCM mechanism.
RTCM in Equity Derivatives Segment shall be made live from January 13, 2025.
[Notification No. NSE/SURV/65645]
