Description

NSE Surveillance circular updating the list of symbols subject to the Reversal Trade Cancellation Mechanism (RTCM) for May 2026, covering series EQ, BE, BZ, SM, ST & SZ across approximately 175 designated securities.

Summary

NSE Surveillance has published the updated list of symbols subject to the Reversal Trade Cancellation Mechanism (RTCM) for May 2026 (Circular Ref. No. 304/2026). The mechanism applies to approximately 175 designated securities across series EQ, BE, BZ, SM, ST & SZ, excluding Nifty 500 constituents, NSE Clearing Ltd approved securities, and ETFs. The symbol list is published monthly via the extranet path /common/Surveillance/RTCM.

Key Points

  • RTCM for May 2026 is applicable to symbols listed in CM_RTCM_may2026.csv, covering series EQ, BE, BZ, SM, ST & SZ.
  • Approximately 175 securities are designated under RTCM for May 2026.
  • Three categories are explicitly excluded: (1) Approved securities list published by NSE Clearing Ltd, (2) Constituents of Nifty 500 index, (3) ETFs.
  • The updated symbol file is available on the NSE extranet at /common/Surveillance/RTCM.
  • RTCM automatically cancels reversal trades between two PANs when specified thresholds are breached.
  • This circular references and builds upon NSE/SURV/62493 dated June 18, 2024, which originally established the RTCM facility.

Regulatory Changes

No new regulatory framework is introduced. This is a routine monthly update refreshing the list of symbols under the existing RTCM framework first established by NSE/SURV/62493 (June 18, 2024). The methodology for shortlisting symbols remains unchanged.

Compliance Requirements

  • Trading members must note the updated RTCM symbol list for May 2026 and ensure systems are aligned accordingly.
  • RTCM does not absolve trading members of their obligations under circular NSE/INVG/46662 dated December 16, 2020, which governs prevention of reversal trades — members remain independently responsible for compliance with those provisions.
  • Members should download the file CM_RTCM_may2026.csv from the extranet path /common/Surveillance/RTCM for the complete and authoritative symbol list.
  • Queries may be directed to surveillance@nse.co.in.

Important Dates

  • April 27, 2026: Circular issued.
  • May 2026: RTCM applicability period for the designated symbol list (CM_RTCM_may2026.csv).

Impact Assessment

The RTCM update affects trading members executing transactions in approximately 175 smaller and mid-cap securities not part of the Nifty 500 universe. For these symbols, any reversal trades between two PANs that breach defined thresholds will be automatically cancelled by the exchange. This has a direct operational impact on trading desks and algorithmic strategies that involve back-and-forth trades in the listed securities. The exclusion of Nifty 500 constituents and ETFs limits the mechanism’s reach to less liquid, potentially more manipulation-prone segments of the market. Members with proprietary or client positions in the listed securities should review their trading strategies and risk controls for May 2026 to avoid inadvertent trade cancellations.

Impact Justification

Routine monthly update to the RTCM symbol list for May 2026 affecting ~175 smaller/mid-cap securities; important for trading members handling these stocks but limited broader market impact since Nifty 500 and NSE Clearing-approved securities are excluded.