Hindustan Times (Noida)

NSE, FORMER CHIEFS FINED BY REGULATOR IN CO-LOCATION CASE

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NEW DELHI: In the high-profile co-location case, markets regulator Sebi on Wednesday imposed a penalty of ₹1 crore on the NSE for failing to provide a level playing field for trading members subscribin­g to its tick-by-tick (TBT) data feed system. In addition, the regulator levied a fine of ₹25 lakh each on NSE’S former managing directors and CEOS Chitra Ramakrishn­a and Ravi Narain. Alleged lapses in high-frequency trading offered through the NSE’S co-location facility came under the scanner after a complaint was filed in 2015. The NSE co-location facility allows stock brokers to take on rent specific racks and co-locate their servers and systems within the exchange premises.

The primary objective of co-location services of the NSE is to reduce latency for connectivi­ty to the exchange’s trading systems for Direct Market Access (DMA), algo trading and Smart Order Routing (SOR).

In its 96-page order, Sebi said that unequal access was apparent at different stages of the technology process and NSE as a stock exchange failed to ensure a level playing field for trading members subscribin­g to its TBT data feed system. TBT data feed provides informatio­n regarding every change in the order book.

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