NSE tells software vendor to probe glitch
The National Stock Exchange (NSE) has ordered an inquiry into the glitch encountered by traders using the Neat on Web (NOW) trading platform.
According to sources, the bourse has ordered the software vendor to perform a root-cause analysis to identify the reason for the malfunction and submit a report in two weeks. While a preliminary inquiry has been conducted by the NSE, its results were inconclusive.
Several brokers feel that the software bug could be a malware attack - a charge the exchange has denied.
“The NSE trading platform is different and functioned with efficiency that day. The NSE's systems are well protected and there was no malware attack registered,” said a spokesperson from the bourse.
The exchange has asked brokers, whose trades were incorrectly processed, to submit the transactional reports for further probe.
“NOW is not a primary source of trade orders for the NSE and this platform caters to smaller brokers. Hence, the damage is not enormous. However, several brokers who were active on NOW platform during the glitch, were adversely affected,” said a source.
It is unclear as to what happens to the losses made by the brokers due to the glitch. Broker lobbies are asking the exchange to pay up for the losses from the investor protection fund.
On May 24, NOW witnessed a technical glitch, which inflated the amount of orders placed and overruled the margin requirements.
Due to the bug, the system allotted more than what was input by the trader. In certain cases, the overshoot was around 100 times.