Systems beefed up at NSE post freak crash, say sources

The National Stock Exchange has put in place various measures to beef up systems to ensure that freak trade incident that halted trade on October 5, 2012 does not occur again, CNBC-TV18 has learnt from sources.Sources said these measures include: - A limit on a single order size- A price band for cash market stocks on which derivatives are available- And allowing futures and options contracts to be executed only in a reference price range and executable range.Furthermore, sources say in case of the circuit filter being triggered, if the situation warrants it, the NSE will not execute inflight orders that have been accepted . The time taken for the market to halt will be in milliseconds and not seconds if the situation demands it.The NSE in consultation with Sebi brought in a change which made it mandatory for members to put limits. These members have to file quarterly reports on whether this is being done. It has also instituted a mandatory risk reduction mode. This will ensure margining at the order level after 90 percent of the margins are utilised.

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