Reversal Trade Cancellation Mechanism (RTCM) in Equity & Equity Derivatives Segment (Five trading days horizon)

National Stock Exchange of India Limited, vide Circular No. NSE/SURV/74137 dated May 08, 2026, has announced an important update regarding the go-live of the Reversal Trade Cancellation Mechanism in the Equity and Equity Derivatives Segment on a five trading days horizon.

Key Details of the Update –
• Applicability: All NSE Members in the Equity and Equity Derivatives Segment.

• Effective Date: The 5-Day RTCM mechanism shall be made live from May 11, 2026.

• Key Changes: Point 6 of NSE Circular NSE/SURV/74022 dated April 30, 2026 has been revised to clarify the intra-day cancellation process for eligible reversal trades.

• The Exchange shall automatically cancel eligible reversal trades in scrips or contracts in the Equity and Equity Derivatives Segment on an intra-day basis.

• Intra-day cancellation shall apply only to eligible reversal trades.

• The date of cancellation and date of trade shall be the same, and no trades pertaining to the previous day shall be cancelled.

• Upon cancellation, trading members shall receive the message “Trade CXL: <Trade details> Trade Cancelled by Exchange User Id (Dealer ID)” on the respective trading terminals.

• RTCM is a facility provided by the Exchange to help prevent incidence of reversal trades between two PANs where specified thresholds are breached.

• The RTCM facility does not absolve Trading Members from their obligation to comply with NSE Circular NSE/INVG/46662 dated December 16, 2020.

• Penalty/Consequence: Not Mentioned.

Actions if Any –
• Trading Members shall continue to monitor transactions covered under NSE Circular NSE/INVG/46662 dated December 16, 2020.

• Trading Members shall continue to take necessary steps under the obligations set out in NSE Circular NSE/SURV/48818 dated July 01, 2021.

• Members may write to surveillance@nse.co.in for further queries.

Compliance Deadline –
May 11, 2026 – The 5-Day RTCM mechanism shall be made live in the Equity and Equity Derivatives Segment.