NSE releases guidelines to revamp technical glitch framework for stock brokers
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Mumbai, Sep 27 : The National Stock Exchange (NSE) has released guidelines on the definition of a technical glitch, capacity planning, software testing and change management, following a SEBI proposal on revamping the technical glitch framework for stock brokers.
The stock exchange's latest guidelines also address the definition of business continuity planning, disaster-recovery sites, and a monitoring mechanism to make the SEBI proposal operational.
The financial disincentive structure is applicable for the technical glitches that continued for more than 15 minutes, as per the current framework, the NSE guidelines said.
The disincentive structure is proposed to be exempted if the technical glitch that occurred either in the mobile-based trading application or in the web-based trading application while either of them is functioning in a proper manner.
The NSE has requested feedback from all stakeholders on the guidelines.
Brokers are required to report any technical glitches to the exchange immediately, and within one hour of occurrence, the release said.
A preliminary incident report must be filed within one business day, outlining the date and time of the incident, details of the incident, the effect of the incident, and immediate action taken to rectify the problem.
A Root Cause Analysis (RCA) Report is required within 14 days, and incidents exceeding 45 minutes must undergo an audit by an independent reviewer designated by the broker.
SEBI, on September 22, released a draft circular that proposes to exclude specific disruptions from the definition of technical glitches. Brokers will no longer classify failures at glitches at market infrastructure institutions (MIIs), delays in KYC processing as reportable technical glitches.
Further back-office issues not affecting trading, payment gateway failures at banks or aggregators, and problems in decision-support tools such as charts or reports are also considered to be excluded from the definition of technical glitches.
The stock exchange's latest guidelines also address the definition of business continuity planning, disaster-recovery sites, and a monitoring mechanism to make the SEBI proposal operational.
The financial disincentive structure is applicable for the technical glitches that continued for more than 15 minutes, as per the current framework, the NSE guidelines said.
The disincentive structure is proposed to be exempted if the technical glitch that occurred either in the mobile-based trading application or in the web-based trading application while either of them is functioning in a proper manner.
The NSE has requested feedback from all stakeholders on the guidelines.
Brokers are required to report any technical glitches to the exchange immediately, and within one hour of occurrence, the release said.
A preliminary incident report must be filed within one business day, outlining the date and time of the incident, details of the incident, the effect of the incident, and immediate action taken to rectify the problem.
A Root Cause Analysis (RCA) Report is required within 14 days, and incidents exceeding 45 minutes must undergo an audit by an independent reviewer designated by the broker.
SEBI, on September 22, released a draft circular that proposes to exclude specific disruptions from the definition of technical glitches. Brokers will no longer classify failures at glitches at market infrastructure institutions (MIIs), delays in KYC processing as reportable technical glitches.
Further back-office issues not affecting trading, payment gateway failures at banks or aggregators, and problems in decision-support tools such as charts or reports are also considered to be excluded from the definition of technical glitches.
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