The Bombay Stock Exchange will implement a limit price protection (LPP) mechanism in its equity derivatives segment from Tuesday, April 16 2024.
The new mechanism will have restrictions on the price range for orders in the derivatives market. The trading system will accept limit price orders within 60% of the reference price for option contracts and 3% of the reference price. Orders that are placed outside this price range will be rejected.
When the BSE announced the same on April 5 in a stock exchange filing, it had said the exchange would implement the LPP mechanism in view of strengthening the pre-trade risk control measures in the…
