Global Markets
Home›Global Markets›Trade & Tariffs›SEBI to keep closing auction session, reworks derivati…
SEBI to keep closing auction session, reworks derivative settlement pricing
SEBI chairman Tuhin Kanta Pandey said CAS was technically successful, including during a recent MSCI rebalancing, but liquidity issues on expiry days remain under review.
Securities and Exchange Board of India chairman Tuhin Kanta Pandey said SEBI will keep the closing auction session, even as the regulator reworks how settlement prices are determined for derivatives on expiry days.
According to LiveMint Markets, Pandey said SEBI is reviewing whether futures and options settlement prices should follow a different methodology after market participants raised concerns about how the current mechanism affects expiry-day trading and liquidity.
He said CAS implementation has worked smoothly from a technical standpoint, pointing specifically to the recent MSCI rebalancing exercise conducted under CAS.
Pandey also acknowledged that while CAS is here to stay, liquidity challenges have been an early issue in other markets that adopted the mechanism, and he said SEBI is studying those experiences as part of the process.