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The NSE on Friday said the decision to stick to primary site over DR (disaster recovery site) was taken after a detailed evaluation on February 24, when the exchange was forced to shut down its operations due to a technical glitch. “Post shut down of trading on the NSE (on February 24), we considered all the available alternatives, including invocation of DR to decide on the course of action that would revive the market at the earliest with least disruption to market participants,” it said, adding, “Post-evaluation, a decision was taken to bring up the systems at the primary site.”
The NSE has multiple telecom links with two service providers to ensure redundancy. “We received communication of instability of the links from both the service providers,” the bourse said. While there was no impact on the trading system, the instability of telecom links resulted in an impact on the online risk management system of the exchange clearing and other systems. Given that the online risk management system was unavailable, market functioning could not continue normally and hence had to be shut down, it reasoned out .
‘Communicated on time’
The NSE has also said that it had communicated opening and closing schedules to market participants on time. The exchange claims that it had informed participants at around 11:30 am that trading will close at 11:40 am and resume at 3.17 pm .
To ensure orderly opening of the market, all outstanding orders were cancelled and a pre-open session was conducted to discover the re-opening price before the markets were opened. It is important to note that there was no impact on trades executed before the market shut down at 11:40 am. The process followed is as per international best practices.
₹900-cr spent on tech infrastructure
In a statement, the leading bourse has also said that it invests heavily in its technology infrastructure on a continuous basis. “Over the last 3-4 years, NSE has almost tripled its annual cash spend on capital and operational expenses on technology to approximately ₹900 crore with a strong technology workforce," it further clarified.
The NSE was in close contact with SEBI and kept them updated of the developments. The exchange is also awaiting detailed root cause analysis from our vendors regarding this incident.
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