13.3 Market phases
With the introduction of screen-based trading system, it is possible to trade from anywhere. However, is it possible to trade at any hour? The system is normally made available for trading on all days except Saturdays, Sundays and other holidays declared by the exchange from time to time. It is relevant to know about the various states of a trading day.
The trading member can carry out the following activities after logging into the exchange trading system and before the market opens for trading:
- Set up market watch (the securities which the user would like to view on the screen).
- Viewing inquiry screens.
At the point of time when the market is opening for trading, a trading member cannot log into the system. A message saying, ‘Market status is changing. Cannot log on for sometime’ is displayed. If the member is already logged in, he/she cannot perform trading activities till the market is open.
The commencement and operation of trading is called the open phase. The opening time for different markets is notified by the exchange to all the trading members. Trading in all the instruments is allowed unless they are specifically prohibited by the exchange. The activities that are allowed at this stage are inquiry, order entry, order modification, order cancellation (including quick order cancellation), order matching and trade cancellation. Exchanges have changed its opening time from 9.55 am to 9.00 am with effect from January 4, 2010. This trade timing is a bid to increase the volumes.
When the market closes, trading in all the instruments for that market comes to an end. A message to this effect is sent to all trading members. No further orders are accepted, but the user is permitted to perform activities like inquiries and trade cancellation. The closing time of both BSE and NSE as of now is 3.30 pm.
Surveillance and Control (SURCON) is that period after market close during which the users have inquiry access only. After the end of the SURCON period, the system processes the data for making the system available for the next trading day.