Description

NSE announces mock trading session for Currency Derivatives segment on December 06, 2025 with no new NEAT version release, including testing requirements for retail algorithmic trading safeguards.

Summary

NSE will conduct a mock trading session in the Currency Derivatives Segment on Saturday, December 06, 2025. This session continues the existing NEAT version 3.5.4 with no new version release. The mock session is being conducted in reference to the new encryption mechanism for interactive messages and immediate order acknowledgement updates announced in September 2025. Trading members are required to participate and test functionalities, particularly those related to safer participation of retail investors in algorithmic trading as mandated by SEBI.

Key Points

  • Mock trading session scheduled for December 06, 2025 in Currency Derivatives segment
  • No new NEAT version release; existing version 3.5.4 continues
  • Two trading sessions planned: Session-1 from Primary Site (11:00-15:30) and Session-2 from DR Site (16:00-16:45)
  • Contingency trading window: 12:00-13:30
  • Trade modification end time: 16:55
  • Live re-login window: 18:30-19:00
  • Members must test algorithmic trading safeguards for retail investors
  • Evidence of participation must be submitted to NNFREG@nse.co.in
  • NEAT version 3.5.4 available at download path: /cdsftp/cdscommon/NEATCDS354

Regulatory Changes

No new regulatory changes in this circular. This mock session facilitates compliance with existing SEBI requirements regarding safer participation of retail investors in algorithmic trading, as per SEBI circular SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/132 dated September 30, 2025.

Compliance Requirements

  • Trading members must participate in the mock trading session
  • Members are required to test functionality related to ‘Safer participation of retail investors in Algorithmic trading’
  • Members must provide evidence of participation to NSE with the following details:
    • Trading Member Name
    • Trading Member code
    • User ID
    • Participation type (Mock/Simulation environment)
    • Date(s) of participation
    • Segment
  • Evidence to be submitted via email to: NNFREG@nse.co.in
  • Members can alternatively test in the simulated environment (refer NSE/MSD/67731 dated April 28, 2025 for daily simulation timings)
  • Members should refer to relevant SEBI and NSE circulars on algorithmic trading safeguards

Important Dates

  • December 05, 2025: Circular issued
  • December 06, 2025: Mock trading session
    • 11:00-15:30: Trading Session-1 from Primary Site
      • 11:00: Normal market open
      • 12:00: Contingency start time
      • 13:30: Contingency close time
      • 15:30: Normal market close
    • 16:00-16:45: Trading Session-2 from DR Site
    • 16:55: Trade modification end time
    • 18:30-19:00: Live re-login window

Impact Assessment

Market Impact: Minimal. This is a routine mock trading session conducted on a non-trading day (Saturday) with no impact on live markets.

Operational Impact: Low to moderate for trading members. Members need to allocate resources to participate in the mock session and test their systems, particularly algorithmic trading functionalities. The primary operational focus is on:

  • Testing system connectivity and trading functionality
  • Validating disaster recovery switchover procedures
  • Ensuring compliance with SEBI’s algorithmic trading safeguards for retail investors
  • Documenting participation evidence for regulatory compliance

Member Impact: Trading members in the Currency Derivatives segment must dedicate staff and systems on Saturday for testing purposes. Members who offer algorithmic trading services to retail clients must specifically test those functionalities to meet the SEBI glide path requirements.

Technology Impact: No new version deployment reduces technical risk. Members continue using familiar NEAT version 3.5.4, focusing testing efforts on business process compliance rather than system upgrades.

Impact Justification

Routine mock trading session for testing purposes with no new system version release. Primary impact is on trading members who need to participate in testing, particularly for algorithmic trading compliance.