- Brief halt in trading in cash market due to erroneous orders because of erroneous quantity
- Market resumed soon in the morning
- Stringent action taken against member: Emkay global disabled and made to unwind positions completely
- Matter being investigated thoroughly
The market opened normally today and Nifty opened at 5,815. At 9.50.58, the Nifty circuit filter got triggered, upon which the cash market was closed automatically. The Nifty fall was apparently on account of the entry of 59 erroneous orders, which resulted in multiple trades for an aggregate value of over Rs. 650 crore. These orders were entered by a trading member, Emkay Global Financial Services, on behalf of an institutional client. These non-algo market orders have been entered for an erroneous quantity which resulted in executing trades at multiple price points across the entire order book, thereby causing the circuit filter to be triggered. These orders have been identified to a specific dealer terminal.
While the Exchange systems functioned normally without any glitch, the above abnormal trades caused market closure automatically, due to the index circuit filter getting triggered. The market was reopened by the Exchange with a pre-open phase at 10.00.22 and trading resumed at 10.05.00 and the market functioned normally. The Exchange is investigating the matter.
Ravi Varanasi, Head-Business Development at NSE said, “We have taken immediate action. Emkay Global Financial Services was asked to close out its positions arising out of erroneous trades, which they have done. The exchange then disabled the member from trading. There is no question of any glitch or malfunctioning in NSE’s systems. The broker’s dealer put in an erroneous quantity in the orders, which is being investigated.’’
Mr. Varanasi also said that the circuit filter was triggered at 10 per cent and the cash market was stopped. The orders that were already in the system were executed in the next few seconds. The market was reopened within a few minutes since the price movement was on account of erroneous trades.