Mumbai: NSE warns Broker that they should not place orders that are too high or below the prevailing market price, with no economic rationale, nor those that are being placed at the extreme end of the operating range as defined by the rules of the exchange . The warning from the NSE came after a big ‘fat finger’ trade on Thursday afternoon, an error caused by punching a wrong key, caused an estimated loss of Rs 250 crore to a broker.
at which prices nifty Options were sold at a fraction of the ruling market price at the time.
A report on Friday said that Vardhman Global Sharecom, the broker which had indulged in erroneous trading, had written to the markets regulator SEBI to look into the mistake. “The trades arising out of such orders placed at unrealistic prices are likely to disturb the normal price-finding process,” the NSE circular said.
Stock market warns brokers to stay away from it Branch In such trades, It also advised them to “put in place suitable internal systems and procedures at their end to ensure that such orders/transactions are not placed on the Business exchange system”.
at which prices nifty Options were sold at a fraction of the ruling market price at the time.
A report on Friday said that Vardhman Global Sharecom, the broker which had indulged in erroneous trading, had written to the markets regulator SEBI to look into the mistake. “The trades arising out of such orders placed at unrealistic prices are likely to disturb the normal price-finding process,” the NSE circular said.
Stock market warns brokers to stay away from it Branch In such trades, It also advised them to “put in place suitable internal systems and procedures at their end to ensure that such orders/transactions are not placed on the Business exchange system”.