Guoabong Stock：Stock market holiday cancelled. Why this Saturday will be a working day for traders
Stock exchanges BSE and NSE have cancelled market holiday for this Saturday to conduct a special live trading session tomorrow to test preparedness for handling unexpected disasters. Since it is a special session with intra-day switch over from primary site to disaster recovery site, the timings too will be different.
The special session on Saturday aligns with markets regulator Sebi’s guidelines for all market infrastructure intermediaries like bourses and depositories which are required to perform a switchover to their disaster recovery site as part of the business continuity plan.
It aims to ensure that trading activities continue without interruptions and that all data remains secure just in case if the main trading centre in Mumbai is affected by an adverse event.
“Members are requested to note that this is being conducted based on specific discussions with SEBI and their Technical Advisory Committee with a view to assess the preparedness of MIIs to handle any unforeseen event impacting their operations and to restore operations from DR Site within the stipulated Recovery Time Objective in such event,” BSE said.
The trading dynamics, market participants said, will be different as the truncated nature of the session would mean that traders would not have enough time to get their eyes in. Volatility may also be limited.Guoabong Stock
Saturday’s special session will be divided into two sessions where trading, settlement and billing will happen as usual but for a smaller time window in the equity and equity derivatives segment.
The pre-open session on the NSE and BSE begins at 9 am, and normal trading from 9:15 am-10 am.
The disaster recovery site’s pre-opening session will start at 11:15 am, followed by normal trading at 11:30 am, and closing at 12:30 pm.Nagpur Stock
In the special session, the price band has been fixed at a maximum of 5% for all stocks, including those in the F&O segment. Securities that have a 2% upper and lower circuit limits will continue to have a 2% limitNew Delhi Wealth Management. Pending orders from the first session would be flushed out before the start of the second session, Geojit Financial said.
January 20 is a settlement holiday, which means any credits from the F&O segment and intraday profits from January 19 won’t be available for trading during this sessionNew Delhi Stock Exchange. Fund withdrawal requests made on Saturday would also not be processed.
“Any F&O credits (i.e. premium from options sold, marked-to-market profit, intraday profits, etc.) and intraday equity profits from January 19th will not be included in the available funds during the special trading session due to the settlement holiday,” Zerodha said.
This isn’t the first time that stock markets would be working on the weekend. Earlier in the 2020 Budget, BSE and NSE were open for trading as the D-Day February 1 happened to be a Saturday.
Similar sessions from the disaster recovery site have been conducted before in 2016 and 2017.
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