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- This week, the Indian stock market is gearing up for a significant event involving a special live trading session on the BSE and NSE.
- The session is designed to test the switch from the Primary site to the Disaster Recovery site, ensuring operational continuity in unforeseen circumstances.
- “Trading members are requested to note that Exchange shall be conducting a special live trading session with the intraday switchover from Primary Site (PR) to Disaster Recovery Site (DR) on Saturday, May 18, 2024, in Equity and Equity Derivatives Segments,” announced BSE.
Explore the implications of the upcoming special live trading session on BSE and NSE, focusing on its strategic importance for market resilience.
The Objective of the Special Live Trading Session
This special live trading session on BSE and NSE aims to assess participants’ readiness to manage significant disruptions or failures at the primary site and ensure robust contingency measures are in place.
Technical Details and Member Instructions
During the special live trading session, there will be an intra-day transition from the Primary Site (PR) to the Disaster Recovery (DR) site. “All securities (including those on which derivative products are available) will have a maximum price band of 5%. Securities already in 2% or lower price band shall continue to be available in the respective bands,” the BSE notice stated. The same price bands will apply at the DR site, ensuring consistency and fairness in trading conditions.
Regulatory Compliance and Market Integrity
The BSE is conducting this special live trading session in strict adherence to SEBI rules. This step, as per the SEBI rules, is being conducted based on specific discussions with SEBI and their Technical Advisory Committee to assess the preparedness of Market Infrastructure Institutions (MIIs) to handle any unforeseen event impacting their operations and to restore operations from DR Site within the stipulated Recovery Time Objective.
Conclusion
The upcoming special live trading session is not just a procedural test but a critical enhancement of the Indian stock market’s infrastructure resilience. It underscores the commitment of BSE and NSE to maintain seamless market operations, safeguarding investor interests and market integrity under all conditions.
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