4 hrs ago
BSE Seeks Common Order Book to Boost Closing Auctions
BSE wants to make its end-of-day trading process more active.
Its chief, Ramamurthy, suggested that BSE and NSE could share one order book.
An order book records investors’ buy and sell instructions.
BSE says this could bring more investors and make trading easier.
It could also help exchanges find a fairer closing price.
BSE is separately discussing whether it can let people trade BSE shares on BSE’s own platform.
Regulators did not approve an earlier request for this arrangement.
Meanwhile, BSE’s share price has fallen recently, including a drop of up to 3.4% on Wednesday.
BSE chief Ramamurthy said a common order book with NSE could increase closing-auction participation and liquidity.
Ramamurthy said the arrangement could also improve price discovery across the exchanges.
BSE is discussing with regulators whether exchanges may list their own shares under the permitted-to-trade framework.
BSE’s earlier request to trade its shares on its own platform was not approved, Ramamurthy said.
BSE shares fell as much as 3.4% on Wednesday and have declined about 14% over the past month.
- Who
- BSE chief Ramamurthy, BSE, NSE, and regulators.
- What
- BSE is discussing a common order book for closing auctions and possible self-listing of exchange shares.
- Where
- The proposals concern trading platforms operated by BSE and NSE; Ramamurthy discussed them in an interview with Zee Business.
- When
- The report does not provide a specific date; BSE shares fell on Wednesday and the discussions are ongoing.
- Why
- BSE says a common order book could increase participation and liquidity in closing auctions and improve price discovery.
Proposed Exchange Changes
Regulatory Status Quo
Common order book
Proposed Exchange Changes
BSE chief Ramamurthy said combining orders across BSE and NSE could increase participation and liquidity in the closing auction while improving price discovery.
Regulatory Status Quo
The article does not identify a specific opposing stakeholder, but the proposal remains under discussion rather than implemented.
Trading an exchange’s own shares
Proposed Exchange Changes
BSE has sought permission to make its shares available on its own platform through the permitted-to-trade framework, and discussions with regulators are continuing.
Regulatory Status Quo
BSE’s earlier request was not approved, leaving the existing regulatory position unchanged.
Key facts
- Proposed measure
- A common order book across BSE and NSE for the closing auction system.
- Expected benefits
- Higher participation, greater liquidity, and improved price discovery.
- Self-listing proposal
- Exchanges could potentially list their own shares on their respective platforms under the permitted-to-trade framework.
- Earlier BSE request
- BSE’s request to trade its shares on its own platform was not approved.
- Wednesday share move
- BSE shares fell as much as 3.4%.
- One-month performance
- BSE shares declined around 14% over the past month.
Sources
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