September 28, 2024
New Delhi, India
The National Stock Exchange (NSE) is set to conduct a mock trading session today, September 28, 2024, between 12:00 PM and 1:00 PM from its Disaster Recovery (DR) site. This marks the third special trading session organized by the NSE this year, as part of its efforts to ensure smooth trading operations in case of emergencies.
Purpose of Mock Trading:
Mock trading sessions are conducted to test the exchange’s trading infrastructure, new systems, and contingency preparedness. In these sessions, brokers can test their trading setup and evaluate their readiness for potential disruptions during regular trading sessions. This drill ensures that, in the event of an emergency, market operations can quickly shift to an alternative Disaster Recovery site to maintain continuity.
Testing T+0 Settlement Cycle:
The mock session will also test the T+0 settlement cycle, a significant shift in trading practices. Introduced in March 2024, the T+0 model allows transactions to be settled on the same day, providing immediate transfer of shares to the buyer and corresponding credit of funds to the seller. This model operates alongside the traditional T+1 settlement, which finalizes transactions on the next day.
Live Trading Sessions from DR Site:
Following the mock session, live trading sessions will be held from the Disaster Recovery site from September 30 to October 1, 2024. These sessions will take place during regular market hours and are part of the exchange’s routine testing of its disaster recovery systems.
Why Participate in Mock Trading?
Participating in mock trading sessions allows brokers to:
- Test their systems and connectivity.
- Run contingency drills to prepare for emergencies.
- Evaluate new products and services in a controlled environment.
While mock prices may appear on market platforms like Kite, these are temporary, and normal pricing will be updated by the session’s end.
The NSE’s ongoing efforts, including these mock trading sessions and the introduction of the T+0 settlement cycle, reflect its commitment to maintaining a resilient and efficient trading environment, ensuring that market disruptions don’t affect investors’ ability to trade.
Disclaimer:
CurrencyVeda provides this news article for informational purposes only. We do not offer investment advice or recommendations. Before making any investment decisions, please conduct thorough research, consult with financial experts, and carefully consider your financial situation, risk tolerance, and investment goals. Investing in the stock market carries risks, and it’s essential to make informed choices based on your individual circumstances. CurrencyVeda is not liable for any actions taken based on the information provided in this article.
