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News Topical, Digital Desk : Starting Monday, December 8, the market will hold a pre-open session for the equity derivatives (F&O) segment. The pre-open session will apply to both individual stock futures and index futures in the equity derivatives segment. According to NSE, this session will run for 15 minutes from 9:00 AM to 9:15 AM using a call auction process. The 15-minute session will have three phases.
1. Order Entry Period (9:00 AM – 9:08 AM):
During this period, traders can submit, modify, or cancel their orders. The system will implement a random closure between the 7th and 8th minute. This random closure will vary between equity pre-open and equity derivatives pre-open.
2. Order Matching and Trade Confirmation (9:08 AM – 9:12 AM): After order entry is complete, the order matching window will begin. During this period, the system will determine the opening price based on the equilibrium price and execute matching orders.
3. Buffer Period (9:12 AM – 9:15 AM): This interval acts as a buffer, transitioning the market from the pre-open phase to the regular, continuous trading session. During the pre-open session, the rules for the order collection period and order matching period must be followed. Limit and market orders are permitted during the order collection period, while special orders such as stop-loss and IOC will not be applicable. During this period, traders will also have access to real-time indicative prices, equilibrium calculations, and demand-supply data. During the order matching period, the exchange determines a single equilibrium price, which becomes the market opening price. Orders are matched in the following order: limit orders with limit orders, market orders with remaining limit orders, and finally, market orders with each other. No orders can be changed or cancelled during this period. NSE has also clarified that all orders placed in the pre-open session will be accepted only after margin verification. If a member does not have sufficient capital, their order will be rejected for the session. The commencement of trading with the new pre-open rules is expected to ensure transparency and fair opening prices in the market.
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