BSE Notice on - Measures for Enhancing Trading Convenience and Strengthening Risk Monitoring in Equity Derivatives

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Date of Issue: 03-12-2025  
          
Issuer: BSE

Measures for Enhancing Trading Convenience and Strengthening Risk Monitoring in Equity Derivatives

Highlights of  BSE Circular dated December -03 -2025

This is further to SEBI circular no: SEBI/HO/MRD/TPD-1/P/CIR/2025/79 dated May 29, 2025, and ICCL circular no: 20250530-26 dated May 30, 2025, regarding Measures for Enhancing Trading Convenience and Strengthening Risk Monitoring in Equity Derivatives.

In accordance with the provisions of point 5.6 on “Pre-open session for the derivatives market” in the above-mentioned SEBI circular, the risk management framework applicable for the pre-open session in the Equity Derivatives segment on both single stocks and indices shall be as follows:

1. All orders shall be checked for margin sufficiency at the order level before inclusion in the pre-open session.
   
   
2. Incoming orders received at the contract level during the pre-open session shall be subjected to pre-risk management for applicable margins on such contract (i.e., SPAN + ELM). For this purpose, the applicable risk parameters prevailing at the time of pre-open session and the maximum price at which the orders may get executed as trades shall be considered.
   
   
3. The order level margins on incoming orders for a client along with applicable margins on the client’s brought forward portfolio shall be assessed for overall margin sufficiency at the clearing member level.
   
   
4. In case of margin sufficiency at the clearing member level, such incoming orders shall be accepted for inclusion in the pre-open session. There shall be no netting of orders accepted for the pre-open session either with the client’s brought forward portfolio or with earlier orders accepted for the pre-open session that are offsetting in nature.
   
   
5. In the case of pre-open orders at the client contract level that are offsetting in nature to earlier pre-open orders accepted for the same client contract, the higher of SPAN+ELM either on the long side or the short side shall be considered. This shall be aggregated with the current portfolio margins of the client and then assessed for margin sufficiency at the clearing member level.
6. Margin benefit on account of calendar spread and cross margining shall not be applicable for the pre-open session.
   
   Members are requested to take note of the above.
   
   In case of any clarification or assistance required in the implementation of this circular, you may contact : Kaushik Jethwa at kau...@secmark.in and 9870210171