NSE plans self-trade prevention

Mumbai: The country’s leading stock exchange NSE on Friday said that it will introduce a mechanism to prevent self-trade on the futures and options (F&O) segment from September 7.

“Members are requested to note that the self-trade prevention mechanism shall be introduced in F&O segment with effect from trade date September 7, 2015,” the National Stock Exchange said in a circular on Friday.

Under the mechanism, if an active order is likely to match with a passive order belonging to the same member-client or same member-proprietary combination in the same order book, then such an order “shall be cancelled by the exchange with rejection message” by the system since the order could have resulted in self-trade. “It will be applicable only to proprietary and client – non custodial participant orders,” National Stock Exchange said.