The National Stock Exchange (NSE) has clarified over some enquiries about certain Nifty futures trades that were higher than the prevailing price.
The enquiries were in regards to Nifty futures trading that were higher than the prevailing price on July 5, 2021.
NSE in a statement said, "We would like to clarify that on July 5, 2021 at the time of market opening, a trading member’s dealer placed a manual buy order for Nifty Near Month Futures in the first few seconds upon opening of the market at a price which was significantly higher than prevailing price in the market. Since the order was within the operating range, the order matched with existing sell orders in the order book and two trades got executed at a price within the trade execution range."
The stock exchange added, "the dealer subsequently cancelled the remaining order. In the meanwhile, there were some orders that were received from other members at prices similar to the above-mentioned order and orders which were within the trade execution range were executed."
Further, NSE stated that an explanation has been sought from the member as to why the order was placed at a price higher than the prevailing price in the market which could have misled the market.
"We would like to reiterate that the exchange systems functioned normally and all orders were executed as per the operating and trade execution ranges as prescribed," NSE added.
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