Updated – February 13, 2024 at 09:18 PM.
|
Mumbai
Last October, the exchanged switched to new software developed by Tata Consultancy Services after getting approval from market regulator SEBI
MCX, the country’s largest commodity exchange, delayed start of trading several times due to technical glitch which occurred at several intervals. Trading on the exchange which was suppose to start at 9 am was postponed to 10 am and then to 11 am. Finally, it started at 1 pm.
“Trading hours for the commodity derivatives segment for February 13 has been revised from 9 am to 1 pm. Members are requested to note, due to delay in file generation exchange, the market will start from 01:00 PM,” MCX had said in a circular.
Last October, the exchanged switched to new software developed by Tata Consultancy Services after getting approval from market regulator SEBI. It terminated the service provided erstwhile promoter of the exchange Financial Technologies (now 63 moons technologies) from last December.
The delayed start on MCX has come under the regulatory glare as it has come out with various measure to avoid technical glitch issues.
In 2021, SEBI introduced financial disincentives for exchanges in case of delays in recovery or failure of disclosures. A failure to restore operations within 45 minutes may result in a penalty of 10 per cent of the average standalone net profit of the two financial years or ₹2 crore — whichever is higher. Additionally, the managing director and the chief technology officer may face a penalty of 10 per cent each of their annual pay for such an incident.
Last September, SEBI directed exchanges to introduce Investor Risk Reduction Access platform for trading members. As per the SEBI circular, from October 3, 2023, trading members will be given access to IRRA across exchanges.
NSE has given access to its IRRA for all Trading Members across Exchanges starting from October 3, 2023. It will available to the TMs supporting Internet Based Trading and Security Trading through Wireless Technology for their investors. IRRA will not be available for Algo trading and Institutional clients, NSE had said.
In January, SEBI has issued a standard of procedures to exchanges in order to curb increasing instances of outages and regarding the extension of trading hours due to the outage.
