Mumbai: On August 28, 2025, the Bombay Stock Exchange (BSE) issued a circular announcing a significant update for traders: from December 8, 2025, a pre-open session will also be introduced for the Futures & Options (F&O) and index segments. Until now, this facility was only available in the equity (cash) segment. With this change, derivative traders will also be able to take advantage of a structured price discovery process before regular market hours begin.
The pre-open session is a brief time window — typically from 9:00 AM to 9:15 AM — that takes place before the main market opens. During this period, investors can place their buy and sell orders. These orders are then matched and used to determine an opening price, allowing for a smoother and more stable start to the trading day. This mechanism is particularly useful in reducing sharp price movements caused by overnight news or significant global events, which often lead to volatility right at market open.
For the F&O segment, this is a vital upgrade. With the introduction of the pre-open session, volatility during the first few minutes of trading can be better managed. It will also lead to improved price discovery, providing traders with early indications of how the market might move. In short, it gives F&O participants the same “warm-up” period that equity traders already enjoy, helping them plan their strategies more effectively.
Importantly, BSE has clarified that no technical changes will be needed to implement this update. The existing APIs and data structures will continue to function as before, which means systems won’t need any new configurations or upgrades.
This move also brings several key benefits for traders. It allows them to prepare their day-trading strategies with more clarity, conduct better technical analysis using pre-market data, and even spot potential support and resistance levels early in the day. All these factors contribute to a more confident and informed trading experience.
To ensure smooth implementation, testing for this feature will begin on October 6, 2025, in a simulation environment. This will give brokers, traders, and system providers ample time to adjust and get familiar with the process before it goes live.
This update marks a major step forward in bringing structure, transparency, and stability to the F&O market, offering traders a better start to their trading day.
