BSE Introduces New Measures To Prevent Trade Reversals In Equity Derivatives

New RTCP mechanism is designed to prevent potential cases of trade reversal taking place on the exchange's trading platform.

Indian stock exchange, BSE, has announced the introduction of a new measure designed to automatically cancel reversal trades executed on its Equity Derivatives segment with effect from today.

The new measure, called Reversal Trade Prevention Check (RTPC), is geared towards preventing potential cases of trade reversal taking place on the exchange’s trading platform which may have been undertaken for tax evasion purposes. It will act as a preventive measure whereby the second leg of a potential reversal trade will be automatically cancelled by the trading system at the time of order matching in an on-line real time manner.

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The move follows the successful launch of a series of other pro-active measures designed at maintaining market integrity and curbing the potential misuse of exchange trading platforms. RTPC has been made applicable on a select set of contracts in the Equity Derivatives segment.

BSE, formerly known as Bombay Stock Exchange Ltd, is Asia’s first and fastest stock exchange in the world. With over 5,500 companies listed on the BSE, it is ranked as the world’s number one exchange in terms of listed members.

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