Description

BSE postpones implementation of pre-trade risk control enhancements for stop loss limit orders in equity derivatives from original date to February 9, 2026, based on market participant feedback.

Summary

BSE has updated the implementation timeline for pre-trade risk control enhancements for stop loss limit orders in the equity derivatives segment. Following market participant feedback on the earlier circular dated January 14, 2026 (circular no. 20260114-28), the enhancement will now go live on February 9, 2026, instead of the originally planned date. A mock trading session for testing will be available on February 7, 2026.

Key Points

  • Implementation date revised to Monday, February 9, 2026 based on market participant feedback
  • Mock trading session scheduled for Saturday, February 7, 2026 for testing purposes
  • This is a continuation of circular no. 20260114-28 dated January 14, 2026
  • Trading members and third-party trading application vendors must complete necessary system development
  • Enhancement applies to stop loss limit orders in equity derivatives segment

Regulatory Changes

This circular does not introduce new regulatory changes but postpones the implementation of pre-trade risk control enhancements previously announced for stop loss limit orders in the equity derivatives segment.

Compliance Requirements

  • Trading Members: Must undertake necessary system development to accommodate the pre-trade risk control enhancements before February 9, 2026
  • Third-Party Trading Application Vendors: Must update their systems to support the new risk control features
  • Testing Required: All participants should utilize the mock trading session on February 7, 2026 to validate system readiness

Important Dates

  • January 14, 2026: Original circular no. 20260114-28 issued
  • January 16, 2026: Updated implementation timeline announced (this circular)
  • February 7, 2026: Mock trading session for testing
  • February 9, 2026: Live implementation of enhancements

Impact Assessment

Operational Impact: The timeline extension reduces implementation pressure on trading members and vendors, allowing additional time for system development and testing. This should result in smoother deployment with fewer technical issues.

Market Impact: Minimal immediate market impact as this is an administrative update. The actual enhancement will improve risk management for stop loss limit orders when implemented, potentially reducing order-level risks in equity derivatives trading.

Stakeholder Impact: Positive for trading members and technology vendors who requested more preparation time. The extended timeline demonstrates regulatory responsiveness to market feedback.

Contact Information

For queries or clarifications:

  • Ketan Jantre, Head – Trading Operations
  • Vivek Garg, Head – Trading Development

Impact Justification

This is a procedural update extending the implementation timeline for pre-trade risk controls on stop loss orders. It provides trading members and vendors additional time for system development, reducing implementation risk but not changing market operations immediately.