BSE and NSE to Conduct Special Live Session with Disaster Recovery Site Switch-Over

The live session will commence with the pre-open session at 9 am, followed by the regular market opening at 9:15 am, and concluding at 10 am.

The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have announced a special live session scheduled for January 20, featuring an intraday switch-over to a disaster recovery site. This strategic decision, outlined in a statement on the exchange portal, aims to test and ensure the effectiveness of their disaster recovery protocols.

The live session will commence with the pre-open session at 9 am, followed by the regular market opening at 9:15 am, and concluding at 10 am. Subsequently, the disaster recovery site’s pre-opening session will kick off at 11:15 am, leading to normal market operations from 11:23 am, with a closing session wrapping up at 12:50 pm.

In the futures and options segment, market activity will begin at 9:15 am and conclude at 10 am. Meanwhile, the disaster recovery site will initiate its operations at 11:30 am, with the closing session scheduled for 12:30 pm.

Both BSE and NSE have detailed the parameters for this special live session. Close-ended Mutual Funds will adopt a 5 per cent price band and futures contracts will operate within a daily range of 5 per cent, with no flexibility for securities or futures contracts on that day.

It is worth highlighting that the predetermined price limits established for both equity and futures contracts at the commencement of the day within the Equity segment will similarly be in force at the Disaster Recovery site. Any adjustments made to the price thresholds of options contracts up to the closing time at the Primary site will be smoothly mirrored at the Disaster Recovery site, guaranteeing a harmonized approach to market operations.

In a statement, both BSE and NSE emphasized that this planned transition to the disaster recovery site during specific times will be a smooth and coordinated process. The decision aligns with discussions held with the Securities and Exchange Board of India (SEBI) and their Technical Advisory Committee.

The objective is to evaluate the readiness of Market Infrastructure Institutions in managing unexpected operational disruptions and restoring operations within the stipulated Recovery Time Objective at the Disaster Recovery Site.

This move comes as part of a broader industry-wide effort to fortify financial markets against unforeseen challenges and disruptions. The testing of disaster recovery protocols is a critical aspect of ensuring the resilience and reliability of financial infrastructure. By conducting live sessions with an intraday switch-over to the disaster recovery site, BSE and NSE aim to assess their preparedness in handling any potential operational issues and to demonstrate their commitment to maintaining a robust financial ecosystem.

The decision to maintain a 5 per cent price band for securities and futures contracts during the live session is a precautionary measure aimed at preventing excessive volatility. By implementing consistent price bands at both the primary and disaster recovery sites, the exchanges seek to provide market participants with a stable and secure trading environment.