BSE, NSE to conduct special trading session testing disruption readiness

Leading stock exchanges BSE and NSE will conduct a special trading session in the equity and equity derivative segment on Saturday to check their preparedness to handle major disruption or failure at the primary site.

The special live trading session will have intra-day switch over from Primary Site (PR) to Disaster Recovery (DR) site.

The exchanges said there will be two sessions -- the first from 9.15 am to 10 am from the PR, and the second from 11.30 am to 12.30 pm from the DR site.

During the special session, all securities, including those on which derivative products are available, will have a maximum price band of 5 per cent.

Securities already in the 2 per cent or lower price band, will continue to be available in the respective bands.

"Trading members are requested to note that the exchange will conduct a special live trading session with intraday switch over from Primary Site (PR) to Disaster Recovery Site (DR) on Saturday, January 20, 2024 in equity and equity derivatives segments," BSE and NSE said in separate circulars.

Geojit Financial Services Chief Market Strategist Anand James said investors do well to note that Saturday's trading dynamics will be different for a variety of reasons.

For one, a shorter timeframe as well the truncated nature of the session will mean that traders will not have enough time to get their eyes in.

"Volatility may be limited, as daily operating range will be restricted to 5 per cent for all stocks and derivatives for the day, while those already in the 2 per cent band will continue to remain so," he added.

This is being conducted based on specific discussions with markets regulator Sebi and their technical advisory committee with a view to assess the preparedness of market infrastructure institutions like exchanges to handle any unforeseen event impacting their operations and to restore operations from the DR site within the stipulated time.

Typically, switching to the DR site is done to ensure business continuity in the case of a major disruption or failure at the primary site.