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A technical glitch in NSE's derivatives trading system brought afternoon trade on index futures to near halt on Monday.
Dealers said the suspension of trading due to the system malfunction began at around 1-15 p.m. and went on till close, though intermittently there were signs of revival.
Brokers are not certain whether the orders that were punched in were executed or not at that time.
Futures on the Nifty, Bank Nifty CNX IT and FTSE indices were affected.
“Nobody was able to trade in the afternoon as the system became static,” said Mr Rakesh Gandhi, Technical Analyst, LKP Securities.
“It could not be ascertained as to what happened to those orders that got stuck – whether they were executed or not,” he added.
In a statement, the NSE said: “An erroneous order cancellation request was received by the trading system today which disrupted the execution process. Concurrently, there was a malfunction in the network layer. These led to the interruptions in the derivative trading system.
“It was therefore, required to start the process on the contingency machine for the market to function. The contingency machine was pressed into service in a short span of time and matching continued.”
But the Head of Trading of a brokerage said: “Now, we have to accept whatever NSE says as they are best positioned to ascertain what really went wrong.”
Brokers said that they were waiting for the exchange to issue a circular on what happens to those orders and trades that got stuck in the afternoon.
“We have clients who do intra-day trading, and hence, have only intra-day limits,” said an NSE broker.
“We assume brokers would not be penalised in case their end-of-day client positions exceed the limits due to this system failure.”
Marketmen were unhappy with the increasing frequency of system malfunction on the NSE trading platform.
“This is the sixth time in the last three months that such a thing has happened on the NSE,” said Mr Kishor Ostwal, CMD, CNI Research.
“The integrity of NSE's trading platform mechanism is at stake as the problem is recurring regularly,” he added.
> raghavendrarao.k@thehindu.co.in
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