Abhishek Sinha
The National Stock Exchange (NSE) is set to introduce a pre-open session for the equity derivatives (F&O) segment starting December 8, 2025. This new framework aims to improve price discovery and ensure smoother opening of the derivatives market.
⏰ Session Duration and Timing
The F&O pre-open session will run for 15 minutes, from 9:00 AM to 9:15 AM, and will operate on a call auction mechanism, similar to the existing system for equities.
This session will be divided into three key phases:
- Order Entry Period (9:00 AM – 9:08 AM):
- Traders can place, modify, or cancel orders.
- The system will randomly close the order entry between the 7th and 8th minute.
- Random closures in the equity and derivatives segments will be independent of each other.
- Order Matching & Trade Confirmation (9:08 AM – 9:12 AM):
- The system will determine the opening price using the equilibrium price method.
- Orders will then be matched and confirmed.
- Buffer Period (9:12 AM – 9:15 AM):
- This serves as a transition phase before continuous trading begins at 9:15 AM.
🧾 Applicable Contracts
- The pre-open session will apply to current-month futures on both single stocks and indices.
- During the last five trading days before expiry, the session will also extend to next-month futures.
However, it will not apply to:
- Far-month (M3) contracts
- Spread contracts
- Option contracts (on indices or stocks)
- Futures on ex-dates due to corporate actions
📊 Objective
The move is designed to enhance liquidity, stabilize opening prices, and reduce volatility at the start of trading hours — aligning Indian derivatives trading with global best practices.
