The snag was completely unexpected and the volatility caused by the glitch put many traders on the back foot which lasted for more than a couple of hours and led to an extension in trading.
Trading snags are not new but measures should be taken to plug the gap. Every snag is a learning experience for traders, exchange as well as regulators, Dipan Mehta, Director, Elixir Equities Pvt. Ltd said in the D-Street Talk podcast with Moneycontrol.
“There will be a lot of thought process on how to avoid such situations in the future, and one suggestion is that we have the other exchange. In this scenario, the cash market was not impacted, and the problem was the F&O market,” he said.
If the regulator can allow NSE contracts can also be traded on the BSE futures market then we would have an entirely future set of backup exchanges available in the event of a technical glitch in the NSE.
This is something which regulator could consider and insist that all the Nifty contracts can be traded on BSE as well which NSE might resist. But, this is one safeguard which can be put in place, added Mehta.
(Tune into the Podcast for more)
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