NSE seeks reason from a member for certain Nifty futures trades order at significantly higher price than prevailing rate

The National Stock Exchange on July 6 sought reason for placing an order for certain Nifty futures trades at a significantly higher rate than prevailing price.

The exchange has received some enquiries about certain Nifty futures trades that were higher than prevailing price on July 5, 2021.

The country's leading exchange clarified that on July 5 at the time of market opening, a trading member's dealer placed a manual buy order for Nifty Near Month Futures in the first few seconds upon opening of the market at a price which was significantly higher than prevailing price in the market.

"Since the order was within the operating range, the order matched with existing sell orders in the order book and two trades got executed at a price within the trade execution range. The dealer subsequently cancelled the remaining order," said the exchange.

The exchange further said, "in the meanwhile, there were some orders that were received from other members at prices similar to the above mentioned order and orders which were within the trade execution range were executed."

An explanation has been sought from the member as to why the order was placed at a price higher than prevailing price in the market which could have misled the market, the NSE said.

The exchange reiterated that its systems functioned normally and all orders were executed as per the operating and trade execution ranges as prescribed.