Sebi begins probe into technical glitches at MCX, NSE’s NOW

Neat on Web or NOW is a shared computer to computer link and risk management tool for trading members, provided by NSE's subsidiary Dotex.

By: PTI | New Delhi | Published: May 29, 2018 3:25:45 pm
Sebi begins probe into technical glitches at MCX, NSE's NOW The Securities and Exchange Board of India (Sebi) has sought a report from both the exchanges that have suffered technical glitches and disruptions last week, the officials said.

Markets regulator Sebi has begun initial probe into technical problem with MCX’s trading system and “disruption” in NSE’s web-based tool NOW, senior officials said.

The National Stock Exchange (NSE) on May 24 witnessed a “disruption” in its web-based tool NOW, which allows traders to use their own software and hardware for trading on the bourse.

Besides, MCX on May 25 observed a technical problem with its trading system.

The Securities and Exchange Board of India (Sebi) has sought a report from both the exchanges that have suffered technical glitches and disruptions last week, the officials said.

It will look into whether adequate safeguard mechanism was in place to avoid such situations, they added.

In July last year, trading was halted for over three hours at the NSE due to technical glitch, leaving investors with no real time updates. Last week, the exchange saw a “disruption” in NSE NOW.

According to media reports, the software had got temporarily shut down for brokers and sub-brokers due to a technical problem.

Neat on Web or NOW is a shared computer to computer link and risk management tool for trading members, provided by NSE’s subsidiary Dotex. This licensed trading software offers direct connectivity to the NSE for trade execution and data feeds through trading terminals, web-based browsers and mobile devices.

NSE in a statement had clarified that there was no disruption in its own trading system.

It said the disruption in NOW, a shared computer to computer link tool used by trading members, has also been rectified and the cause for the problem was being assessed.

“NOW is a shared CTCL (Computer-to-Computer Link) system which had a disruption which has been rectified and the system is now up and running,” an NSE spokesperson had said.

“The members had alternate mode of connectivity during the disruption and hence trading was not disrupted. The reasons for disruption are being assessed,” he had added.

Multi Commodity Exchange (MCX) had experienced a trading halt in September last year and again trading was stopped last week at its platform due to a technical glitch.

According to MCX, data integrity and other checks have been performed to satisfy and assure that there has been no impact on any of the surveillance, risk margining and any other pre or post-trade activities.

“Based upon preliminary analysis, the technology teams observed some aberration in the low-level network layer. To avoid that potential cause leading to any further issues, preventive measure has been taken.

“However, a full detailed analysis is still being carried out by the software vendor, working with original equipment manufacturers (OEMs) of hardware and the underlying operating system,” the exchange noted.

For all the latest Business News, download Indian Express App

Advertisement
Advertisement
Advertisement
Advertisement
Advertisement