Starting from February 23, 2023, the National Stock Exchange (NSE) will be extending the market timings for trading in Interest Rate Derivative (IRD) contracts from 3:30 PM to 5:00 PM. This extension will apply to all existing expiry contracts that have expiry dates beyond February 23, as well as any new expiration contracts introduced thereafter. Trading will be available until 5:00 PM on the expiry day for these contracts. It’s important to note that the CP Code modification/Give up timings will remain the same and continue until 5:30 PM. Additionally, there will be no changes to the Final Settlement Price computation mechanism, which will continue to be based on the last two hours of VWAP of NDS-OM trades, subject to a minimum of 5 trades.
– Shrimohan Jhawar
After NSE, even BSE now has extended the trading hours in Interest Rate Derivative (IRD) contracts from 3:30 PM to 5:00 PM.
Hey @imsahadeb ,
Any idea about the average daily/monthly volume and market participant share for this particular segment?
Any idea how can this change potentially affect any other segment?
Hi @amit The volume in this segment is less, as they are used mainly by institutions for Hedging (as they already hold underlying in lot multiples). For retail participants, due to weaker market depth in the underlying, arbitrage is not fruitful. Though the volume is substantial but the spread cost / slippage will be higher.
For other segments, though SEBI has already allowed timing to be extended till 5:00 PM (Equity) and 11:55 PM (Derivatives) but Exchange(s) are constantly taking feedback and doing impact analysis from various stakeholders.
Even we have opened up the topic here for discussion. Do share your views too!
Equity segment too ? Till 5 pm ?
@Pradhan No. Only Interest Rate Derivatives (IRD)
We also released a detailed infographic on SEBI’s extended trading hours. Check it out