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

headstrong007

----- Full-Time ----- Day-Trader
#1
Stock exchanges were seeking to extend their trading hours for recent competition with Singapore Exchange.
We all know, recently the termination of SGX Nifty created an ugly war between Indian Stock Exchange vs SGX. SGX said they will launch similar product again from June bypassing NSE!

This type of move was inevitable after the below reaction from SGX! So the main credit goes to SGX. :D
https://www.bloombergquint.com/markets/2018/04/11/sgx-to-list-new-indian-derivatives-in-june

NSE was clearly very angry with the move by SGX.
So, most probably NSE-BSE is going to extend the timing soon. Just see today's reaction. :eek::)

'Extended trading hours will give investors an opportunity to hedge market risks beyond the traditional cash market hours' -NSE Chief.
'Indian market in line with the International market and Indian commodity derivative markets”.- BSE Chief.

Here is the link:-
https://www.bloombergquint.com/mark...anges-to-extend-timing-for-equity-derivatives

*******************

This is a big decision, as the extended trading hour will change the market structure.
Gap up down possibility will decrease.
Volatility will decrease which will create an adverse effect in options trading also, range-bound time will increase.
Option premium will probably increase.
Now 15 hr intraday option writing time using intraday leverage.

Overall this will create more opportunities for investors and traders and cut the overall market risk.

It will effect option trading more.

The extended trading hour is going to change traders daily routine also.
As long as the market is open there will be more addiction to trade also(bad psychological effect).

Feel free to share your view as a derivative trader, u like it or u dislike it.

Let's discuss all probable pros and cons here.
 
Last edited:

pannet1

Well-Known Member
#2
Stock exchanges were seeking to extend their trading hours for recent competition with Singapore Exchange.
We all know, recently the termination of SGX Nifty created an ugly war between Indian Stock Exchange vs SGX. SGX said they will launch similar product again from June bypassing NSE!

This type of move was inevitable after the below reaction from SGX! So main credit to them. So some credit goes to them. :D
https://www.bloombergquint.com/markets/2018/04/11/sgx-to-list-new-indian-derivatives-in-june

So, most probably NSE-BSE is going to extend the timing soon. Just see today's reaction. :eek::)

'Extended trading hours will give investors an opportunity to hedge market risks beyond the traditional cash market hours' -NSE Chief.
'Indian market in line with the International market and Indian commodity derivative markets”.- BSE Chief.

Here is the link:-
https://www.bloombergquint.com/mark...anges-to-extend-timing-for-equity-derivatives

*******************

This is a big decision, as the extended trading hour will change the market structure.
Gap up down possibility will decrease.
Volatility will decrease which will create an adverse effect in options trading also, range-bound time will increase.
Option premium will probably increase.
Now 15 hr intraday option writing time using intraday leverage.

Overall this will create more opportunities for investors and traders and cut the overall market risk.

It will effect option trading more.

The extended trading hour is going to change traders daily routine also.
As long as the market is open there will more addiction to trade also.

Feel free to share your view as a derivative trader, u like it or u dislike it.

Let's discuss all probable pros and cons here.

it looks like if you (nse) want to sell something in your shop, burn every shop (sgx) that is competing with you.

all you said seems to be right. nice thoughts headstrong.
 
#4
I posted the following in a couple of other threads. Its more apt here.

I read the following on the Hindu Business Line
https://www.thehindubusinessli...l-midnight/article23775493.ece

"ANMI (Association of NSE Members of India) welcomes enabling provisions on extension of trading hours but wishes to place on record that it should be restricted to index derivatives alone and not cover individual stocks, as they may be vulnerable to abuse by unscrupulous elements,” said Rajesh Baheti, President, ANMI.

Sent from my SM-J210F using Tapatalk
 
#5
I am still a intermediate level trader. I have so many apprehensions about the new sebi move. For eg., how does its actually impact volatility and liquidity?

Some have pointed out that it could result in low volume low liquid trades and i tended to agree with that. With respect to just trading the index, how do you guys think it would impact liquidity and volatility?

My fear is being squeezed by the big institutional investors because I am primarily an options buyer and not a seller.

Sent from my SM-J210F using Tapatalk
 

jagankris

Well-Known Member
#6
I posted the following in a couple of other threads. Its more apt here.

I read the following on the Hindu Business Line
https://www.thehindubusinessli...l-midnight/article23775493.ece

"ANMI (Association of NSE Members of India) welcomes enabling provisions on extension of trading hours but wishes to place on record that it should be restricted to index derivatives alone and not cover individual stocks, as they may be vulnerable to abuse by unscrupulous elements,” said Rajesh Baheti, President, ANMI.

Sent from my SM-J210F using Tapatalk
As they may be vulnerable to abuse by unscrupulous elements --- only now it is vulnerable increasing the time frame would actually reduce it.
 
#8

Just-Trade

Well-Known Member
#9
I posted the following in a couple of other threads. Its more apt here.

I read the following on the Hindu Business Line
https://www.thehindubusinessli...l-midnight/article23775493.ece

"ANMI (Association of NSE Members of India) welcomes enabling provisions on extension of trading hours but wishes to place on record that it should be restricted to index derivatives alone and not cover individual stocks, as they may be vulnerable to abuse by unscrupulous elements,” said Rajesh Baheti, President, ANMI.

Sent from my SM-J210F using Tapatalk
It would be a good idea to allow only index derivatives to extended hours.

Just-Trade
 

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