SEBI mulls over extending trading hours for derivatives market
DSIJ Intelligence / 08 Aug 2017
The Securities and Exchange Board of India (SEBI) is looking to extend trading hours for the derivatives market, according to a leading news daily.
The Securities and Exchange Board of India (SEBI) is looking to extend trading hours for the derivatives market, according to a leading news daily. This move is aimed at enhancing international competitiveness of the domestic market.
The market regulator was considering if trading in index futures could be kept open even after the cash market closes.
The move will provide investors with a tool to price in news flow that come after market hours. Currently, a lot of foreign investors use global platforms such as the Singapore Stock Exchange (SGX) and the Chicago Mercantile Exchange (CME) which offer almost round-the-clock trading in some Indian contracts for trading or hedging their underlying exposure to Indian stocks.
Since allowing derivatives trading in 2000, the trading timings of both futures and options (F&O) and cash market have remained linked.
SEBI has undertaken a review of the equity derivatives market and floated a discussion paper on this matter. The key feedback received was that derivatives trading, particularly index futures, could be delinked and allowed to trade beyond the cash market hours.
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