Sure , Indian derivative traders look for clue , at American Bond traders , marital tiff !!
but SGX Nifty is suppose on close on August this year. Do you think this will increase the number of derivative contracts ? What do you think will be the negative and positive effects?
Can we keep ourselves awake till 11:30 ?
Why currency futures have been excluded ?
Form when this going to be implemented?
as looking volatility will decrease and intraday strategies will need to be change
@nithin is it for stocks derivatives or includes index derivatives?
Trading hours extension: how derivatives would work once cash segment is closed?
I think options trading will vary.
And I forgot to add another important thing, commodities trading will start on equity exchanges from October. I guess this increase in time is also to accommodate equity exchanges to stay open when it starts.
So commodities for sure, maybe cross currency pairs, and index derivatives might be open till 11.55 pm. I don’t think stock derivatives will be allowed.
exchanges will go for is, as longer trading hours means more number of transactions which will bring more income to them. STT and exchange txn charges
Maybe the extended hours will only be for Index futures initially. Which is a rather good thing. As Global indexes also trades for extended hours. For eg S&P Emini has Globex hours which trades overnight.
Another RIGHT move from Sebi after the regulation of derivative margin requirement. Extended derivative trading session will act as Pre-market session for the next day Capital market opening. So, exchanges need not have a separate pre-market session everyday in the CapitalMarket for price discovery.
Also,I believe there will be extension of CapitalMarket session till 5PM and Cross-Currency derivative session till 11.55PM in the future.
Here is my wishlist for exchange working timings:
9AM - Currency derivatives, Equity derivatives & Commodity derivatives Opens.
10AM - CapitalMarket Opens without any Pre-market session.
2PM till 3PM - CapitalMarket closure as Lunch-Break after European market opening.
3PM - CapitalMarket session resumes.
5PM - CapitalMarket closure along with INR derivatives closure.
11.55PM - Cross-Currency derivatives, Equity derivatives & Commodity derivatives closure.
Bottom line: The derivative speculation noise gets separated from the CapitalMarket with equity derivative losing focus and the CapitalMarket can gain Focused attention.
p.s:Looking forward for regulation from Sebi on margin requirements of Intraday derivative trading products. The money lost from the intraday derivative products is way more than the money lost from acting on spam Equity SMS tips.
Will the margins come down after the trading hours extension rule from oct 1?
one straight forward change will happen that is i have to change my intra day strategy…
10:30 pm, 15th October 2018, nifty today made high with 15 points going north and low for 10 points… Trading weather forecast 15 points average volatility from 6 pm to 11 pm
That is not a good move @ all. This will probably reduce the market volatility and as per working people (job) they usually choose mf route to invest so they probably do not care.
This will also increase pressure on trader (mostly intraday) as working from 9 to 3:30 was great like school hours and we have lots of time for other activities and plan for next trading session (while markets are closed (in peace)).
I like to trade like 2-4hrs and call it a day after good profits or loss knowing market will close 3:30 and also knowing the volatility behavior (like hight @ opening and near closing and low at mid ) helps a lot but with this long trading hours it will be difficult.
Or may be i am wrong and this is going to be a good move ()
Right. Volumes will be high in first and last hour in any case. Not good for daytraders as long hours will stress them out. Good news for swing traders as this will reduce gap up/ down.
imagine those poor souls trading on 5min charts…
Lol… Don’t even mention the ones trading on 1Min… Lol… Or lower maybe tick charts like 500 tick…
Day traders will have to shift to half-day traders lol
India’s market regulator, SEBI in a landmark decision on May 4 announced that stock exchanges will now be able to trade in the Equity Derivatives Segment between 9 am and 11.55 pm. The motive behind the change is to bring the timings in-line with the commodity market.
But this clearly mentions equity derivatives not index