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Managing Your Positions During Risk Rejection Mode (RRM)

Posted
ByManoj

When a broker enters Risk Rejection Mode (RRM), the exchanges impose trading restrictions to ensure that the broker’s margin utilization remains within prescribed limits. During this period, clients may notice order rejections if they use unsupported order types.

RRM is an exchange-level risk control mechanism and is not specific to any broker. When a trading member enters RRM, pending orders are cancelled, and only specific order types are permitted until the broker exits RRM.

How to manage positions?

To exit or manage your existing positions during RRM:

  1. Place your order as usual.
  2. Change the Order Validity from Day or EOS to IOC (Immediate or Cancel).
  3. Submit the order.

Note: An IOC order is executed immediately, either fully or partially. Any unexecuted quantity is automatically cancelled by the exchange.

Exchange-wise RRM rejection messages

The rejection messages shown below are generated directly by the respective exchanges (NSE, BSE, and MCX). These are standard exchange responses displayed when the broker is in Risk Rejection Mode (RRM) and are not generated or modified by Flattrade.

NSE

You may receive the following rejection:

  • 16419 This error code will be returned for invalid data in the order packet

This rejection is commonly observed when an order does not meet the exchange’s requirements while the broker is in RRM.

BSE

You may receive the following rejection:

  • ONLY IOC ORDER ALLOWED IN RRM MODE

This indicates that the exchange is accepting only IOC orders while the broker is in RRM.

MCX

You may receive the following rejection:

  • ORDER TYPE GFD IS NOT ALLOWED AS MEMBER IS IN SQUAREOFF DUE TO MARGIN VIOLATION

This indicates that GFD orders are not permitted while the member is in Square-off/RRM mode. Use an IOC order instead.

Note: Only existing positions can be closed; no new positions can be opened while the broker is in the RRM.