Zerodha co-founder and CEO Nithin Kamath said the broking firm may see some portion of its revenue knocked off after Closing Auction Session (CAS) takes effect, adding that things will “get a little more complicated” from August 3 onwards.
Stock exchanges BSE and NSE are introducing the system for stocks with F&O contracts. It is a structured trading window held at the end of the trading day. During this period, market participants place buy and sell orders to determine a single closing price for a security through an auction-based mechanism.
Kamath explained that this is not a new concept globally, as major exchanges including the New York Stock Exchange (NYSE) and London Stock Exchange (LSE) already use versions of a closing auction to determine closing prices. "Today, the closing price of a stock in India is based on the volume-weighted average price of trades during the last 30 minutes. Under CAS, buy and sell orders will instead be collected and matched at a single equilibrium price," the Zerodha CEO said in a post on X.
