New stock market pre-open session rules from today: What changes for you?
The revised arrangement makes the pre-open process more similar to the auction mechanism followed during the Closing Auction Session (CAS). NSE said the objective is to bring the mechanism used for determining the market opening closer to the framework already followed for the closing auction.
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.
Also reported by 1 other outlet
- CAS effect: Pre-open session rules to change from today. What changes for investors? economictimes.indiatimes.com
