CAS effect: Pre-open session rules to change from today. What changes for investors?
Stock Market Rules changes : The change is important for traders who usually place orders closer to the end of the pre-open session. Under the new system, they will no longer be able to put in market orders after 9:05 am and will have to specify a price through a limit order.
The National Stock Exchange (NSE) is set to implement revised rules for the pre-open session of the equity market starting September 7. While the pre-open session will continue to operate between 9 AM and 9:15 AM, the rules governing order placement will change. The pre-open process will now mirror the auction mechanism used during the Closing Auction Session (CAS).
During the first window from 9 AM to 9:05 AM, traders can submit, modify, or cancel both market and limit orders. However, from 9:05 AM to 9:10 AM, only limit orders will be accepted. This means that any market orders placed during this window will be rejected. Furthermore, traders will not be able to place market orders after 9:05 AM, emphasizing the importance of using limit orders towards the end of the pre-open session.
The revised system aims to bring the pre-open process closer to the auction mechanism used during the closing session. This change could potentially reduce abrupt price distortions resulting from late market orders. Traders entering orders between 9:05 AM and 9:10 AM will have to use limit orders, offering greater control over the price at which the trade is executed.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- New stock market pre-open session rules from today: What changes for you? timesofindia.indiatimes.com
