CAS Chaos: Dalal Street's biggest stock trading reform in years endures a rocky first week

For much of the first week of trading under India’s new auction system to set closing stock prices, traders were convinced that one of the most consequential market structure reforms in years was faltering.As calls grew louder for the mechanism to be rolled back, the regulator met with some of the nation’s top stock brokerages and delivered a clear message: the closing auction is here to stay.Senior officials at the Securities and Exchange Board of India, including board member K.V.R Murty, told market players the new system is just facing teething issues in its early days and that the regulator remains confident that it will improve as participation rises, according to people familiar with the discussions, who asked not to be identified because the talks were private.The discussions came after the first two trading sessions — including Tuesday’s expiry on the National Stock Exchange of India Ltd.