Traders faced technical glitches on the Bombay Stock Exchange (BSE) and Zerodha platform on Thursday, with some market participants reporting delayed price updates and difficulties in executing orders in certain Sensex options contracts.
The disruption came on the weekly expiry day for Sensex derivatives, when trading activity in index options is typically elevated. Sensex weekly contracts were scheduled to expire on September 10.
Reports emerge during trade
Several traders took to social media platform X to report problems with select Sensex option contracts. Some market participants said option premiums were not updating properly, while others reported that their orders were not being executed.
However, trading continued normally across several other futures and options contracts, suggesting that the issue did not affect the entire derivatives platform.
BSE said one partition of its cash segment experienced an outage beginning at 9:42 am. The disruption affected securities mapped to that particular partition, while other partitions continued to operate normally.
The exchange later said the issue had been resolved and normal operations resumed at 10:08 am.
Zerodha flags order issues
Zerodha also informed customers that price updates and order placement were affected for certain futures and options contracts traded on BSE.
The brokerage said the issue was occurring across brokers and that it was coordinating with the exchange to resolve it. The problem was subsequently resolved.
The latest disruption comes amid heightened sensitivity among Sensex options traders following recent concerns over derivatives pricing and settlement mechanisms.
SEBI reviewing derivatives settlement methodology
The technical issues also come against the backdrop of wider concerns surrounding the newly introduced Closing Auction Session (CAS). SEBI said last week that it would review the methodology used to determine derivatives settlement prices after market participants raised concerns about sharp movements and discrepancies in index levels.
The CAS, introduced on August 3, has resulted in heightened volatility during some expiry sessions, with traders calling for derivatives settlement to be delinked from the cash-market auction process.
The latest BSE and Zerodha glitches have therefore added to concerns among traders about the reliability of price updates and order execution during high-volume derivatives sessions.
