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The stock exchanges and clearing corporations have implemented a software-as-a-service model. So if one exchange or clearing corporation goes down, trading will continue.
In this model, data of one exchange physically resides on the premises of the second exchange and is instantaneously updated in real time, SEBI chief Madhabi Puri Buch said on Tuesday.
“So if one clearing corporation or exchange goes down, that data is taken and actually uploaded into the software system of the second exchange,” Buch said.
SEBI is also working on a mechanism that will allow clients of a broker to have direct access to the exchange in order to manage and close out his positions, in case the broker goes down.
Buch called this a non classical approach to cyber security.
The existing financial players are undergoing massive transformation and morphing more and more into fintech companies, said SEBI chief Madhabi Puri Buch.
“To us, a stock exchange is a fintech company. When we look mutual funds, MF Central, an investment management platform, is nothing but a fintech in terms of its substance. This morphing of incumbents has a huge advantage. They have the cash flows, manpower, and the stability of the traditional businesses. Yet, when they put their minds to it and apply the principles of modern technology, they transform into this new rocket ships,” Buch said on the sidelines of Global Fintech Fest 2023.
India is among the first to move to a T+1 settlement. We are now talking of a one-hour settlement and an instantaneous settlement. In all of this, the concept of time is crucial, she said. “Today if we look at execution only platforms for the MF industry the whole idea is to morph from something which used to take days in the physical mode to being instaneneous. The new facility of creating online bond platforms addresses the issue of time and convenience and leads to greater innovation in the market,” Buch said.
Technology allows you to optimise all the three years which are critical in the market: Risk, convenience and cost.
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