Description

NSE announces mock trading session for Currency Derivatives segment on December 13, 2025, with focus on testing algorithmic trading retail investor safety features and new NEAT Adapter versions.

Summary

NSE will conduct a mock trading session in the Currency Derivatives segment on December 13, 2025, from 11:00 to 13:45 hours. This session is related to the new encryption mechanism for Interactive Messages and Immediate Order acknowledgement. Members must test the functionality for safer participation of retail investors in algorithmic trading and provide evidence of participation to the exchange. No new version release is scheduled for this mock session.

Key Points

  • Mock trading session scheduled for December 13, 2025
  • Trading hours: 11:00 to 13:45 (Normal market timings)
  • Trade modification ends at 13:55
  • Live re-login window: 16:30 to 17:00
  • NEAT version 3.5.4 to be used (download path: /cdsftp/cdscommon/NEATCDS354)
  • Multiple NEAT Adapter versions supported with different GR ports
  • Mandatory testing of algorithmic trading retail investor safety features
  • Evidence of participation must be submitted to NNFREG@nse.co.in

Regulatory Changes

This circular implements SEBI circular SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/132 dated September 30, 2025, regarding safer participation of retail investors in algorithmic trading. SEBI has provided a glide path for adherence by trading members, requiring exchanges to verify member participation in testing sessions.

Compliance Requirements

For Trading Members:

  1. Participate in Mock Session: Test functionality related to retail investor protection in algorithmic trading

  2. NEAT Adapter Configuration: Use appropriate NEAT Adapter version and port combinations:

    • Old Adapter v1.0.20: Port 10877
    • Old Adapter v1.0.22: Port 10877
    • New Adapter v1.0.23: Port 10879

  3. Submit Evidence of Participation: Email the following details to NNFREG@nse.co.in:

    • Trading Member Name
    • Trading Member code
    • User ID
    • Participation type (Mock/Simulation)
    • Date(s) of participation
    • Segment

  4. Alternative Testing: Members can also test in the daily simulated environment (refer NSE/MSD/67731 dated April 28, 2025)

  5. Reference Circulars: Review implementation standards and operational modalities in:

    • NSE/INVG/67858 dated May 05, 2025
    • NSE/INVG/69255 dated July 22, 2025
    • NSE/INVG/69289 dated July 24, 2025
    • NSE/INVG/70309 dated September 19, 2025

Important Dates

  • December 11, 2025: Circular issue date
  • December 13, 2025: Mock trading session date
    • Trading: 11:00 to 13:45
    • Trade modification deadline: 13:55
    • Live re-login: 16:30 to 17:00

Impact Assessment

Market Impact: Low - This is a scheduled mock session with no impact on live trading.

Operational Impact: Medium - Trading members must:

  • Allocate resources for mock session participation
  • Test new algorithmic trading safety features
  • Ensure proper NEAT Adapter version compatibility
  • Submit compliance evidence to the exchange

Technology Impact: Members need to verify their systems work correctly with the new encryption mechanism for interactive messages and immediate order acknowledgement. Multiple NEAT Adapter versions are supported during the transition period, providing flexibility but requiring careful configuration management.

Compliance Impact: Mandatory evidence submission requirement creates additional compliance obligations for trading members under SEBI’s retail investor protection framework for algorithmic trading.

Impact Justification

Routine mock trading session for testing system updates and compliance with SEBI algorithmic trading regulations. Mandatory participation evidence required from trading members.