India’s new auction-based mechanism for settling derivatives prices is entering its first monthly expiry test, with traders preparing for how auction end-of-day stock prices will be applied. The monthly roll-out comes after the system has already been used in regular trading and smaller settlement cycles, and market participants are watching for whether it reduces volatility or creates further disruptions.
The system began operating on August 3 and has run through regular sessions and a weekly expiry. Bloomberg notes that the mechanism has drawn criticism, including concerns about sharp market swings and allegations of manipulation, making this monthly expiry a key early stress test. Business Line similarly frames the upcoming monthly expiry as an initial evaluation point for the new process, reflecting trader scrutiny as the market moves from weekly to monthly application.
Across coverage, the focus is on the operational transition from earlier expiry formats to a monthly one and the market’s response. Both outlets treat the event as an early checkpoint for the auction-based pricing and settlement approach in India’s derivatives market.
