SEBI allowed to extend F&O trading till 11:55 p.m from Oct. 1.

[afin]

No way..With flood of discount brokers I do not see extended hours would be implemented in near future.

Think of it this way- how much bargaining power do all the discount brokers have combined together? On the other hand look at all the traditional full service brokers. Point is big interests matter. Big money drives big money and that matters.

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[columbus]

Thread starter add a poll ,if possible.

A big NO. Extending to 9 am to 3.30 pm is OK.

will put a lot pressure on Brokerage houses.

 

[headstrong007]

Thread starter add a poll ,if possible.

A big NO. Extending to 9 am to 3.30 pm is OK.

will put a lot pressure on Brokerage houses.

This is a good idea.
Actually, I don't know how to start a poll. So, skipped that process.

Moderators can do it on this thread(better idea). Or anyone can create a separate thread for a vote.
*********
Currently, there is no more edit option left for the 1st post as it is old.

 

[headstrong007]

Full step by step story and my thought process about extending trading hour:-

STEP:-1
Extending trading hour possible only after,
A major step towards a simpler securities market trading infrastructure, regulator Securities and Exchange Board of India (Sebi) on Wednesday 27 DEC 2018 announced the much-awaited integration of stocks and commodities trading on a single exchange from October 1ST next year.


STEP:1
27 Dec 2018. Stocks, commodities to trade on single exchange from October 1st 2018

https://www.livemint.com/Money/zJKV...to-trade-on-single-exchange-from-October.html

Above was the stepping stone for extending the hour of equity derivative segments. NSE BSE suddenly starts thinking of generating more income using the same infrastructure which would be used for commodity trading. Some big brokers also supported that thought.

After that, BSE based big brokers lobby first approached SEBI for extending a derivative market hour. That demand was pending for long for the same set of brokers, but with the launch of the commodity, they think it is cost-effective to share the same infrastructure till midnight.

STEP:-2

Still, Jan 2018 more powerful NSE lobby was thinking that idea may be good to generate more volume, hence earning. There were getting profit sharing from SGX but losing more volumes day by day.
Finally NSE decided to stop SGX Nifty Feb 2018 so that some volumes from there can shift back.
Within last 3-4 years major NIFTY volumes of NSE was shifted to SGX.
NSE finally decided to stop SGX on FEB 2018.

STEP:-2
9 Feb, 2018. No More Offshore Derivatives Of Indian Equity Indices, Stocks. NSE BANNED SGX NIFTY.

Here is the news link:-
https://www.bloombergquint.com/mark...-not-provide-market-data-to-foreign-exchanges

As a result, full fledge war started NSE vs SGX when
12 Feb 2018.SGX looks to bypass curbs placed by Indian bourses

https://www.livemint.com/Money/TZ6L...to-bypass-curbs-placed-by-Indian-bourses.html

STEP:-3
SGX said they are going to list New Indian Derivatives from June bypassing NSE. Now NSE will not get any money and lose business too.

STEP:-3

11, APRIL 2018.
SGX To List New Indian Derivatives In June, NSE To Investigate How

https://www.bloombergquint.com/markets/2018/04/11/sgx-to-list-new-indian-derivatives-in-june

Now NSE has no other choice to extend the trading time for Nifty as long as possible as a partnership with SGX has ended and they would not get any profit share from SGX too.

So, now powerful NSE lobby joined with BSE with full force for extending timing.
Finally, SEBI gave the permission within 1 month. SEBI approved that from 1 OCT 2018 too which was the earliest possibility in line with Commodity launch date of NSE-BSE.

 

[afin]

I am beating myself a little here. In the morning took a BN 25800 CE and Nifty 10700 CE combo and exited early. 1 hour more and profit would have doubled

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[headstrong007]

Globally, the derivative exchanges are already following the extended trading hours. So, eventually, it is going to happen in India too. IMO.

Currently, both NSE-BSE Stock exchanges, want to extend the trading hours for equity derivatives to allow Indian traders to hedge any event risk that arises late at night. With the possible launch of the commodity business from 1 Oct 2018 onwards it is going to be easy for them to share the same infrastructure for Equity F&O.

 

[headstrong007]

Initially, they are thinking of Index F&O only which will decrease overall volatility.
But, if they introduce Stock F&O as well on later stage then volatility will also increase due to the time difference between Cash & F&O stocks.
Both stock exchanges want to introduce Stock F&O also later for an extended trading hour. But, this will create settlement issue without improved infrastructure. But, most of the small retail investors in cash market(who can't hedge using F&O) may face more difficulty in synchronization and bigger gap up down due bcoz of overnight STOCK F&O action.
For example, Reliance Cash may close around 940 around 3:30 but after nigh F&O trading, the future stock may rise another Rs 20. Then this will create extra gap up in cash stock around morning with a push in volatility.

As overall volatility is going to decrease with extending trading hour, both exchange may want to introduce Stock F&O also to create a balance. But, they have to solve settlement issue and improve infrastructure first. Let's see the progress.

 

[headstrong007]

LATEST NEWS:-
NSE and its smaller rival BSE both said they would look to extend trading hours and work out plans before 1st October 2018.

Initially, it was BSE Asia's oldest exchange wanting to extend trading hours. They seek approval from SEBI with a proposal detailing their framework for issues such as risk management, settlement process and availability of manpower. Later NSE joined their hands due to rivalry with SGX.

 

[headstrong007]

BSE Ready For Extended Trade In Equity Derivatives, Says Chief Ashishkumar Chauhan

The BSE-promoted India International Exchange at the GIFT City already works 22 hours a day compared to the 15-hour trading day SEBI has allowed, said the bourse’s chief executive officer AshishKumar Chauhan told BloombergQuint in an interview.

Besides, commodity exchanges in India have been running till 11:55 pm for the last 15 years and they too “seem to have no problem at all”, Chauhan added.

https://www.bloombergquint.com/mark...ty-derivatives-says-chief-ashishkumar-chauhan

 

[afin]

BSE Ready For Extended Trade In Equity Derivatives, Says Chief Ashishkumar Chauhan

https://www.bloombergquint.com/mark...ty-derivatives-says-chief-ashishkumar-chauhan

I'd be keen on sensex based index derivatives too perhaps.

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