On Saturday, May 18, 2024, the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) will conduct a special live trading session to test their disaster recovery systems and ensure preparedness for major disruptions. The trading activity will take place in two sessions.
The first session will commence at 9:15 am and conclude at 10:00 am. During this session, trading will be carried out from the primary site (PR). The second session will begin at 11:30 am and end at 12:30 pm, with trading conducted from the disaster recovery (DR) site. This exercise is designed to simulate an intraday switchover from the primary site to the disaster recovery site, allowing the exchanges to evaluate their systems’ ability to handle a major failure at the primary site.
During the May 18 sessions, all securities, including those in the equity and equity derivative segments, will operate under a maximum price band of five percent. The exchanges have stated that “no flexing of securities or futures contracts” will be allowed on that day. Securities already within the two percent or lower price bands will remain in their respective bands.
Both exchanges have clarified that the price band for the equity segment and futures contracts, which will be applicable at the start of the day at the primary site, will also be applicable at the disaster recovery site. This means the same reference price range will be used for the pre-open session in the equity segment at the disaster recovery site.
Additionally, any changes in the price bands of options contracts due to market factors up to the close time at the primary site will be carried forward to the disaster recovery site.
The primary purpose of this special trading session is to ensure business continuity and the robustness of the exchanges’ systems in case of a significant disruption in trading activity. This proactive measure is crucial for maintaining the stability and reliability of India’s financial markets.
