What are NSE exchange feeds?
Well, if you’re going to buy and sell stocks, you need to know who’s buying what at which price. And if you’re a stock exchange that facilitates these transactions by bringing buyers and sellers together, then you have an obligation to relay this information to all the participants in the market. (View Highlight)
And as a consequence, brokers had to take drastic action. See, many customers had already had open positions. Meaning they were in the middle of executing a trade. But once trading halted on the NSE, they were paralysed. If the brokers also hadn’t intervened, some of these trades would have ended very badly. It would have had massive consequences for many customers. So brokers decided to square off certain trades (reversing the transaction by assuming a new trade on a working stock exchange. In this case, the Bombay Stock Exchange) and alleviate some suffering at least. (View Highlight)
Note: How the brokers saved the customers’ money when trading stopped in NSE due to technical glitch
In simple words they’re saying that their risk management systems stopped working because both telecom providers who powered their primary and the backup site glitched simultaneously. And they glitched because of instability precipitated due to digging and construction activity along the path between the two sites. (View Highlight)
Note: Reason behind the technical glitch
So SEBI has finally decided to do something about this. In a bid to restore confidence and alleviate investor stress, they’re now asking exchanges to set up another platform — Investor Risk Reduction Access (IRRA) Platform — entirely independent of any redundancies exchanges already have. This will offer customers another exit point. Meaning if the exchange broke down, then brokers can offer customers the option to switch to IRRA and exit their trades here independent of what’s happening at the exchange. And if all goes according to plan, the customer can take evasive action, wait for the exchange to go back online, and finally switch back to the regular platform when the broker gives the all clear. (View Highlight)
