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NSE Alert: Pre-Trade Controls for Market Price

NSE alerts on Pre-Trade Risk Controls, emphasizing Price Protection. These measures aim to secure market stability, curb volatility, and uphold fair trade practices, ensuring a balanced and secure trading environment.

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NSE Alert: Pre-Trade Controls for Market Price

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  1. NSE Notifies in regard to the Pre-Trade Risk Controls - Market Price Protection

  2. On 24th January 2023, the National Stock Exchange (NSE) issued a notification in regard to the Pre-Trade Risk Controls - Market Price Protection. The following has been stated with respect to the handling of Market Orders - The revised handling of "Market' price orders with book type Rl and time conditions as Day/IOC - 1.Are deemed to be applicable to all Futures and Options contracts in the Commodity derivatives segment. (a)"Market" price orders are not allowed in a contract that has not traded for the day, i.e. LTP is not available for the day. The Exchange shall reject market orders received in such a scenario, and an appropriate message shall be sent to the respective trading terminal. (b)Market Orders are allowed to be traded only up to a specific markup/down price above/below the Last Traded Price (LTP). (c)Buy market orders are allowed for trading till (1+X%) of LTP. (d)Sell market orders are allowed for trading until (1-X%) of LTP. Changes in Multileg Orders (2 Leg / 3 Leg) - 1.Multileg orders with the ‘MarketPrice’ condition for all (Futures and Options) contracts are to be discontinued. Market orders received in such a scenario are to be rejected by the Exchange, and an appropriate message is to be sent to the respective trading terminal. 2.Multileg orders with limited price conditions shall remain available for all contracts. The above-mentioned notification is deemed to be effective from 06th February 2023. Sushree Dash Legal Researcher Official Notification Attached here

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