CAS chaos: Retail traders call for boycott, declare 'No Trade Day'
Retail traders are observing a proposed ‘No Trade Day’ on August 12 to protest the newly introduced Closing Auction Session (CAS), higher securities transaction tax and changing market rules. The campaign follows concerns over increased volatility and divergence in closing prices since CAS was introduced.
Several retail traders are boycotting the stock market today, protesting against the newly introduced Closing Auction Session (CAS) system that has caused panic among investors this month. The stock exchanges implemented CAS this month, altering the way closing prices are calculated for stocks in the futures and options (F&O) segment.
The new system, which aims to improve price discovery and reduce the impact of last-minute trades, involves a 20-minute auction process that runs from 3:15 pm to 3:35 pm. During this time, buy and sell orders for eligible stocks are collected and matched at a single equilibrium price.
Several investors urged others to not trade on Wednesday as a mark of protest, along with the higher securities transaction tax (STT) and changing rules. A user named Ashish Gupta, who claims to be a full-time trader, tweeted, "I carried zero positions in indices, won’t take any indices trades or new SSO trades today. Have SSO positions open which I’ll manage if needed. Let’s observe #NoTradingDay today and make it a success."
However, some questioned the timing of the boycott, suggesting that Tuesday or Thursday should have been chosen as higher trading days, as an expiry day with further intensified impact would send a stronger message. Despite no official announcement from any stock broker association, the ongoing protest highlights the concerns of retail traders regarding the new CAS system.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
