Extended trading may strain system, fatigue people

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Extended trading may strain system, fatigue people

Udayan Mukherjee, Managing Editor, CNBC-TV18, believes the extended trading session might be a strain on the banking system and the system on the whole. "More than anything it will just fatigue and tire people out – eight hours of trading."

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See what other CNBC-TV18 anchors have to say Nifty BSE | NSE 30/05/12 Are Mutual Funds betting on Nifty?

Udayan Mukherjee, Managing Editor, CNBC-TV18, said that the SEBI go-ahead to extend trading hours in the market, if implemented, might be a strain on the system. "More than anything, eight hours of trading will just fatigue and tire people out." 

Here is a verbatim transcript of Udayan Mukherjee on CNBC TV18. Also see the accompanying video.

Start of a new week and one of the last few days maybe that we are starting a show at 9o'clock in the morning. Very soon things will change, the exchanges seem to be deciding that the trade will start one hour early and end one and a half hours later, so one of the few days left that we start the show at this time. Big day for earnings, big week for earnings and globally things are a little mixed as indeed the Nifty has been around that 5,000 mark.

On extended trading hours:

Securities & Exchange Board of India (Sebi) has said yes, the exchanges seem to be keen and whatever problems brokers etc have, I don't think they decide, they are the price takers and decision takers. So I suspect this is just a matter of time maybe a few weeks before it becomes clear.

I think it will strain the system; probably brokerages will not be very happy. It might stray in the banking system as well but more than anything it will just fatigue and tire people out eight hours of trading. The exchanges might throw you the book saying across the world people do this and that, but the bigger question is why did they need to do it? - Will they manage to takeaway SGX Nifty volumes, will they manage to attract a lot of volumes from the West post 3.30pm or can you do in five and a half hours what you can do in seven or eight hours of trading? So I am not convinced about the need to do this but I think a decision has been taken and everybody has to fall in line.

Another interesting point someone made was that for people tracking this market in Singapore i.e. fund managers, their day now closes at 6pm their time because we close at 3.30pm. At this rate people are pulling days till 9pm, so I don't know if their back-offices as well can deal with it?

I think finally any kind of observation that needs to be put to the exchanges has to rise above lifestyle issues because they are not small. I think people are generally not very happy because of having to come in at some time and having to leave at another time but I don't think that is going to convince the exchanges or Sebi from dithering on a decision. If indeed something needs to be point out for them to review their decision, it would have to be on the plank of either costs going up or back-offices system and systemic pressures and the big question on why are you doing this because this system has lasted for many decades. D you need to change it and if you do need change it, is there a good enough reason to do it? So I think on those parameters a little bit of a debate would be welcome?