Brokers' association grants conditional approval for the extension of trading hours in index derivatives.
New Delhi, February 8, 2024: The Association of National Exchanges Members of India (ANMI), a leading body representing brokers across national exchanges, has granted conditional approval for the extension of trading hours in index derivatives. This move comes after months of discussions and debate within the industry.
Extended Trading Hours, But With Conditions:
The proposed extension would see index derivative contracts traded for an additional three hours, from the current 5:00 PM to 8:00 PM. However, ANMI’s approval comes with the caveat that several operational hurdles need to be addressed before the extension can become a reality. These hurdles include:
1. Manpower and Infrastructure:Â Ensuring adequate staffing and infrastructure for the extended hours.
2. Technology Upgradation:Â Upgrading trading systems to handle the increased volume and volatility.
3. Market Regulation:Â Addressing concerns regarding market manipulation and investor protection.
4. Investor Education:Â Educating investors about the risks and benefits of trading in extended hour
Industry Reactions:
The news has been met with mixed reactions from industry players. Proponents of the extension argue that it would align Indian markets with global standards and provide greater flexibility for investors. They also believe it could boost trading volumes and liquidity.
However, critics argue that the extension could lead to increased speculation and volatility, particularly for retail investors. They also raise concerns about the potential impact on broker profitability and employee well-being.
Uncertain Future:
While ANMI’s approval is a significant step forward, the future of extended trading hours in India remains uncertain. The Securities and Exchange Board of India (SEBI) will need to weigh the potential benefits and risks before making a final decision.