A Software Trader

[Arjun Tandon @iarjuntandon]

SEBI has proposed major changes to the CAS framework - including expiry settlement methodology, market timings and more.

These are still proposals and SEBI is seeking public feedback.

I’ve created a short video to explain these proposals as simply as possible.

Also sharing the feedback link in comments 👇

[CNBC-AWAAZ @CNBC_Awaaz]

#CASKiAwaaz | रिटेल ट्रेडर्स के सुझाव

-ऑप्शंस एक्सपायरी को CAS से डीलिंक किया जाए
-ऑप्शंस की एक्सपायरी 3:15 पर कर दी जाए
-3:25 से 3:28 के बीच HFTs को ऑर्डर कैंसिल करने से रोका जाए
-पहले की तरह 3:30 तक सामान्य ट्रेडिंग हो, बाद में 10 मिनट का CAS हो
-CAS के दौरान स्टॉक फ्यूचर्स 3% की रेंज को घटाकर 1% किया जाए
-हर ब्रोकर के टर्मिनल पर इंडिकेटिव भाव दिखने चाहिए

@_anujsinghal #CAS #SEBI

[Saketh R @saketh1998]

Thanks, @_anujsinghal for bringing the retail issues around CAS into the spotlight.

I still believe the simplest solution is the one many traders have suggested: let the options expire before CAS begins at 3:15 PM.

There is no need to change the CAS mechanism or redesign anything else. Just ensure that expiring options are settled before the closing auction starts.

The biggest problem today is that from 3:15 to 3:30, option traders are essentially playing blind.

If options simply expire at 3:15, they get to trade freely and fairly until expiry, without this unpredictable 15 minute tail created by CAS.

The fix can be simple.

@IRITA_india
#caskiawaaz
#decouplecas

[A Software Trader @ASoftwaretrader]

#rollbackCAS

[A Digital Blogger @adigitalblogger]

CAS is not new.

America, Germany, Europe, Hong Kong all run closing auctions.

One thing separates India from them.

Timing.

America: settles on the close, and stops trading at the close.

Germany: the auction starts, the expiring contract stops. Same second

Europe: the main index options settle on an index average taken around midday. Nowhere near the close.

Hong Kong: ran a closing auction, suspended it after a crash, brought it back seven years later in phases, and kept derivative products out of it entirely.

India: settlement forms in an auction between 3:15 and 3:35, and the expiring option trades right through it, and five minutes past it.

Everywhere I checked, the expiring contract stops before its own settlement price is formed. In India, it does not.

Was this the reason that caused the expiry chaos?

Sensex expiry runs on the same design.

On what basis was this designed at all?

[A Software Trader @ASoftwaretrader]

@ladwi123 Hi. It's working now.

[A Software Trader @ASoftwaretrader]

Taking a break from posting daily updates.

[A Software Trader @ASoftwaretrader]

@AAJ_MechEngr @TradeFlow_Algo -1.5%

[A Software Trader @ASoftwaretrader]

+2% for the day using @TradeFlow_Algo (entered at 1:30 pm)

[A Software Trader @ASoftwaretrader]

@saurabhksingh03 @TradeFlow_Algo No

[A Software Trader @ASoftwaretrader]

-1 % for the day using @TradeFlow_Algo

[A Software Trader @ASoftwaretrader]

+1.3% for the day using @TradeFlow_Algo

[A Software Trader @ASoftwaretrader]

RT @TradeFlow_Algo: Trying to protect yourself from freak trades? Join us to find out how using Tradeflow in this session at 1 pm: https://…

[A Software Trader @ASoftwaretrader]

-0.3% for the day using @TradeFlow_Algo

[A Software Trader @ASoftwaretrader]

+0.8% for the day using @TradeFlow_Algo

[A Software Trader @ASoftwaretrader]

+2% for the day using @TradeFlow_Algo (bigger account)

[A Software Trader @ASoftwaretrader]

Busy with family. Will be trading from Monday

[A Software Trader @ASoftwaretrader]

Very low premiums! Will skip the day

[A Software Trader @ASoftwaretrader]

+2% for the day using @TradeFlow_Algo

[A Software Trader @ASoftwaretrader]

-0.55% for the day using @TradeFlow_Algo. Everything increased post 3 pm

[A Software Trader @ASoftwaretrader]

Final: +2.5% for the day using @TradeFlow_Algo. Entered only during the spike using custom rules of the application