NSE says abnormal trade caused market closure
Trading was halted for 15 minutes after a `650 crore bulk trade by Emkay triggered lower circuit filter
Mumbai: The National Stock Exchange of India Ltd (NSE) said that erroneous orders worth ₹ 650 crore placed by broking firm Emkay Global Financial Services Ltd triggered a brief halt in trading on the exchange on Friday morning.
“Emkay Global Financial Services has closed out the positions arising out of erroneous trades smoothly. The member has been disabled from trading," NSE said in its latest clarification.
Trading in the cash segment was halted for about 15 minutes on Friday morning after the freak trades resulted in the Nifty spot hitting a lower circuit filter at 4888.20.
“The market circuit filter got triggered due to entry of 59 erroneous orders which resulted in multiple trades for an aggregate value of over ₹ 650 crore. These orders have been entered by a trading member Emkay on behalf of an institutional client," it said.
NSE said the trades were non-algorithmic in nature.
“These non-algo market orders have been entered for a 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," NSE said.
In the recent past, freak trades triggered by erroneous algorithms had caused trading in the Nifty futures index to halt multiple times. However, dealers said this particular instance could be one of an erroneous sell trade on the entire basket of Nifty stocks causing the index to hit its lower circuit limit.
The NSE benchmark Nifty index fell 0.70% to close at 5,746.95 points.
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