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India Eyes 30-Min Trading Window for Derivatives Settlement
15 Oct
Summary
- India's securities regulator will reinstate a 30-minute window for equity derivatives settlement.
- This move effectively separates the new closing auction from futures and options settlement.
- The change aims to simplify settlement processes for market participants.
India's securities regulator is preparing to reinstate a key trading settlement procedure for equity derivatives. This method utilizes the final 30 minutes of the trading day on expiry days, according to sources familiar with the matter. This decision will effectively separate the new closing auction process from the settlement of futures and options.
The move indicates a return to a previously established practice for managing derivatives. By delinking the new closing auction from settlement, the regulator aims to simplify operations for market participants. This adjustment is expected to provide greater clarity and efficiency in the settlement of equity derivatives.
