BSE Propose to Introduce Pre-Open Trading in Equity Derivatives from December 8

On Thursday, August 28, the stock exchange BSE Ltd said that, beginning on December 8, 2025, it would launch a pre-open trading period in the equity derivatives sector, which will include both index and stock futures.

According to the exchange, the new functionality will align with existing pre-open session structures already used in the equity segment. Importantly, BSE clarified that there will be no modifications in the ETI API or market data broadcast streams, making the transition seamless for market participants.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

Testing Phase from October 6

BSE also confirmed that testing for the pre-open session in equity derivatives will begin on October 6, 2025, in a simulation environment. Market participants, including trading members and third-party front-end application providers, have been advised to implement necessary changes and conduct trials in advance. The move is aimed at ensuring a smooth rollout of the new trading window without any operational hurdles.

Market Reaction and Stock Performance

Despite the announcement, BSE shares faced pressure on Thursday, August 28. The stock was down & closed by 1.84% at ₹2,174.90 per share. Notably, the stock has already gained around 20% in 2025.

The broader market also witnessed a third consecutive session of declines, largely due to the impact of additional 25% punitive tariffs imposed by the U.S. on Indian imports. As of now, the Sensex is down by 705.97 points (0.87%) at 80,080.57, and the Nifty fell 211.15 points (0.85%) at 24,500.90.

Among capital market stocks, 360 One Wam Ltd shares were the worst performer, falling & closing down by 4%. UTI AMC and Angel One declined & closed by 4% and 2.95%, respectively, while MCX and HDFC AMC dropped nearly 3%.

Industry Context

Pre-open sessions are considered important in enhancing price discovery and market stability by allowing orders to accumulate and match before the regular trading hours. By extending this mechanism to the derivatives market, BSE aims to strengthen its equity derivatives platform and improve efficiency for investors and trading members.

Conclusion

An important step towards enhancing market operations has been taken by the BSE with its decision to extend pre-open sessions into equity derivatives. Notwithstanding the present market volatility brought on by worries about international tariffs, the exchange aims to offer a more transparent and effective trading framework, with testing set to begin in October and a complete implementation by December.