The Association of National Exchanges Members of India (ANMI) recently approved a proposal to extend derivative trading hours, potentially introducing two daily sessions: the regular 9:15 AM to 3:30 PM session and an evening session from 6:00 PM to 9:00 PM. This decision raises questions regarding the expiry time for derivative contracts.
When considering this proposal, it’s crucial to address whether the expiry time for contracts will remain at 3:30 PM or shift to 9:00 PM. This decision holds significant implications for traders, investors, and market dynamics.
Extending the expiry time to 9:00 PM could offer greater flexibility for traders, allowing them to react to market developments beyond regular trading hours. However, it also introduces complexities, including potential liquidity issues during the evening session and the need for heightened risk management measures.
On the other hand, maintaining the expiry time at 3:30 PM preserves the status quo, ensuring consistency and familiarity for market participants. Yet, it may limit opportunities for traders to adjust their positions based on late-breaking news or global market movements.
As this proposal progresses, stakeholders must carefully evaluate the pros and cons of each option to determine its impact on market efficiency, liquidity, and risk management practices.
What are your thoughts on this topic? Should the expiry time for derivative contracts remain at 3:30 PM, or should it be extended to 9:00 PM? Let’s discuss the potential implications and considerations in this evolving landscape.