NSE extends trading hours for interest rate derivatives till 5 pm from Feb 23

The National Stock Exchange from February 23, 2023 has extended the market timing for trading in interest rate derivatie contracts from 3:30 pm to 5 pm. With this move, the NSE aims to align the trading window with underlying market timings. It will also help boost revenues for the capital markets business in the short term, but it may also lead to lower participation.

Currently, the contracts are traded in a window of six hours and 30 minutes from 9 am to 3:30 pm, but from tomorrow, the window will be extended to 5 pm. From February 23, the contracts with expiry day beyond February 23 and all new contracts introduced from this date will be available for trading until 5 pm on expiry day.

What will stay the same?

These changes will not affect the trading hours for other interest rate derivative contracts.

The new timing will not affect the mechanism for calculating the final settlement price. According to the circular, it will be calculated based on the last 2 hours of VWAP of NDS OM trades with a minimum of 5 trades. There will also be no changes in give-up timing or CP Code modification, and it will continue until 5:30 pm.