Pre-Trade Risk Control - Limit Price Protection (LPP) Update
BSE notice 20260508-30 · 08 May 2026
Official title
Pre-Trade Risk Control - Limit Price Protection (LPP) - Update
Official record
Open source pageSummary
Check the official recordWhat changed
BSE updates the Limit Price Protection (LPP) parameters for BSE FOCUSED IT Futures and Options contracts. The exchange sets the LPP percentage at 80 percent for Options and 2 percent for Futures. These limits include minimum absolute values of 80 rupees for Options and 200 rupees for Futures. The LPP range flexes automatically if 10 orders fail validation within 120 seconds. This trigger requires participation from at least 3 trading members and 5 unique UCCs. These rules apply to BSE FOCUSED IT contracts starting May 11, 2026. The exchange provides a mock trading session on May 9, 2026. The LPP framework for other index derivatives remains unchanged.
What you must do
- Trading members must note the new LPP parameters for BSE FOCUSED IT contracts.
Key dates
- Mock trading session date
- 09 May 2026
- Effective from
Document text
[Image omitted. See the official document.]
NOTICE
| Notice No. | 20260508-30 |
|---|---|
| Notice Date | 08 May 2026 |
| Category | Trading |
| Segment | Derivatives |
| Department | Trading Operations |
| Subject | Pre-Trade Risk Control - Limit Price Protection (LPP) - Update |
| Attachments | No Attachment |
[Image omitted. See the official document.]
With reference to Exchange circular nos. 20260213-39 dated February 13, 2026, 20251128-56 dated November 28, 2025, 20240729-42 dated July 29, 2024, 20240420-1 dated April 20, 2024 and 20240405-40 dated April 05, 2024, on the Pre-Trade Risk Control - Limit Price Protection (LPP) mechanism in the Equity Derivatives Segment, trading members are requested to note the following parameters for BSE FOCUSED IT Futures and Options contracts.
| Instrument Type | % on Ref. Price (LPP%) | Subject to minimum absolute value (₹) |
|---|---|---|
| Options | 80% | ₹ 80 |
| Futures | 2% | ₹ 200 |
Further, LPP range for a contract shall be flexed automatically in the corresponding direction only if –
- A minimum of 10 orders are rejected on account of LPP validation, within 120 second intervals, and
- Such rejected orders involve a minimum of 3 trading members and minimum of 5 unique UCCs.
These parameters shall apply to BSE FOCUSED IT contracts with effect from the contract launch day, i.e., Monday, May 11, 2026 and will be available for testing in the mock trading session scheduled on Saturday, May 9, 2026.
There are no changes in the LPP framework for other index derivatives contracts.
For and on behalf of BSE Ltd.,
Ketan Jantre
Kaushal Mehta
Head – Trading Operations
Vice President - TRADING OPERATIONS
Source details
- Source
- BSE Ltd (Bombay Stock Exchange)
- Type
- notice
- Published by source
- 08 May 2026
- Document number
- 20260508-30
- Issuing division
- Trading Operations
- Effective date
- 11 May 2026
- Coverage area
- securities