NSE freak trade fiasco: Will it go scot-free again?
Given the opaque style of functioning and NSE being the favoured exchange of SEBI, the exchange will go scot-free once again. However, SEBI should seek clarification from NSE and also penalise both exchanges for not following its circular on index-wide filters The so-called high-tech systems of National Stock Exchange (NSE) failed today. The exchange which boasts as technologically advanced was hit by a trading error. What I wonder most was not the error but the index which had to stop trading as 10% circuit filter went all the down to 4,888 which is 15.8% down (As per NSE’s own website the day’s low is 4888.2). If one reads the NSE's circular dated 28th September ( http://www.nseindia.com/content/circulars/CMTR21799.pdf ), a 570 point (10%) should have triggered the circuit breaker . Once the circuit breaker is hit, the market (both NSE & BSE) have to be closed immediately for one hour. Extract from the circular is as follows: On September 28, 2012, t...
