This new year Indian stock exchange barometers, BSE and NSE are set to open at 9 AM in the morning. This was with a view to facilitate investors to react to other Asian markets cues. And the decision was taken with wide market participant's consensus. At least on initial reactions aired on Business News channels and Business Dailies suggest that there was lack of market consensus on the issue. The stock exchanges seem to have unilaterally decided on the issue. Though participants included brokers, they were larger ones and they also intended consensus from the participants.
What does this extended trading hour mean?
This mean additional trading hour. Earlier markets opened at 9.55 AM 3.30 PM. This additional trading hour means additional trade. This trade impacts the stock exchanges, depositories, depository participants and largely the stock brokers. For example, the number of trades in Nifty on 31st December 2009 when the markets last opened at 9.55 AM, was 58,09,802 and the average for the entire month was 59,80,000. The trade for today is 63,99,108. Though this may be a marginal increase, bet it will be much more in the coming days. This increase in trade means extended settlement process. The stock brokers is required to maintain more sophisticated books of account. They need to send reports to customers on a daily basis. Imagine the volume of work that would increase.
For all, they have to work after trading hours and also have to set up things ready for next day morning for beginning of trading. This will definitely impact the personal time of the stock brokers and those working with stock brokers. Increased work pressure will obviously mean lesser output.
On the lighter side, we will have news channels covering an extra hour of market, relief from investigative journalism that they carry on these days (manufacturing news), relief from the "how do you react to the allegations???, now its time to respond" to VIPs, relief from "First on....." statements.
My take, the stock market operations does not start at 9 and end at 3.30. It is atleast 6 hours of additional work than the trading hours. This effectively works out to 12 and 1/2 hours of additional work. Lesser time for family, greater stress, more divorces, more ruins to our culture, lesser time to relax (after all stock markets are full of stress).
Get back the decision.
What does this extended trading hour mean?
This mean additional trading hour. Earlier markets opened at 9.55 AM 3.30 PM. This additional trading hour means additional trade. This trade impacts the stock exchanges, depositories, depository participants and largely the stock brokers. For example, the number of trades in Nifty on 31st December 2009 when the markets last opened at 9.55 AM, was 58,09,802 and the average for the entire month was 59,80,000. The trade for today is 63,99,108. Though this may be a marginal increase, bet it will be much more in the coming days. This increase in trade means extended settlement process. The stock brokers is required to maintain more sophisticated books of account. They need to send reports to customers on a daily basis. Imagine the volume of work that would increase.
For all, they have to work after trading hours and also have to set up things ready for next day morning for beginning of trading. This will definitely impact the personal time of the stock brokers and those working with stock brokers. Increased work pressure will obviously mean lesser output.
On the lighter side, we will have news channels covering an extra hour of market, relief from investigative journalism that they carry on these days (manufacturing news), relief from the "how do you react to the allegations???, now its time to respond" to VIPs, relief from "First on....." statements.
My take, the stock market operations does not start at 9 and end at 3.30. It is atleast 6 hours of additional work than the trading hours. This effectively works out to 12 and 1/2 hours of additional work. Lesser time for family, greater stress, more divorces, more ruins to our culture, lesser time to relax (after all stock markets are full of stress).
Get back the decision.
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