New Delhi: National Stock Exchange (NSE) on Tuesday said the surge in Nifty futures trading on Monday was caused by manual orders placed by trade members at a price that was much higher than the prices that apply in the market.
NSE said that the system functions normally and asks members of the trade concerned to explain in connection with orders placed at higher prices.
Clarification comes after certain nifty futures trade soars on Monday in a few seconds from the opening bell without the same increase in the underlying cash market.
“We want to clarify that on July 5, 2021 at the time of the market opening, the trade member dealer places a manual purchase order for the Nifty Futures close month in the first few seconds after opening the market with a price significantly higher.
From the price that applies on the market,” NSE said in a statement.
Because orders are within reach of the operation, orders match the sale orders in the order book and two trades are executed at prices within the reach of trade execution.
Dealers then cancel the remaining order, he added.
Meanwhile, there are several orders received from other members at a price similar to orders and orders mentioned within the reach of the trade execution run.
According to the exchange, the explanation has been sought from members why orders are placed at higher prices than the prices that apply in the market that can mislead the market.
“We want to repeat that the exchange system that functions normally and all orders are executed according to the operating and trade execution ranges as specified,” NSE said.
NSE clarifies on a surge in good futures trading, the system said is fine
