NSE To Hold Special Trading Session On May 18; Here's Why

Throughout this special session, all securities, including those associated with derivative products, will adhere to a maximum price band of 5 per cent

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The National Stock Exchange (NSE) announced on Tuesday that it has decided to conduct a dedicated trading session specifically designed for the equity and equity derivative segments on May 18. This initiative aims to assess the exchange's readiness and capacity to effectively manage significant disruptions or failures at its primary site. During the special live trading session, there will be an intra-day transition from the Primary Site (PR) to the Disaster Recovery (DR) site.

As outlined in a circular issued by the exchange, the special trading session will be divided into two segments. The first segment will run from 9:15 am to 10 am at the PR, while the second segment will take place from 11:30 am to 12:30 pm at the DR site.

Throughout this special session, all securities, including those associated with derivative products, will adhere to a maximum price band of 5 per cent. Securities that are already subject to a price band of 2 per cent or lower will remain within their respective bands as per usual.

NSE said in a circular, "Exchange shall be conducting a special live trading session with intra-day switch over from Primary site to Disaster Recovery site on Saturday, May 18, 2024, in equity and equity derivatives segments.”

Previously, both the NSE and the Bombay Stock Exchange (BSE) organised comparable trading sessions on March 2nd.

These sessions are being organised following detailed discussions with the Securities and Exchange Board of India (SEBI) and their technical advisory committee. The aim is to evaluate the readiness of market infrastructure institutions such as exchanges to manage any unexpected incidents affecting their operations. Additionally, the focus is on their ability to swiftly restore operations from the DR site within the designated timeframe.

Typically, the transition to the DR site occurs as a precautionary measure to guarantee the continuity of business operations in the event of significant disruption or failure at the primary site.