National Stock Exchange of India Ltd’s: The Disruptor who Altered the Trading Market with ‘New Equities Trading System

by May 4, 2016 0 comments

Implementing eIPO for IPO order capture to simplify bidding process and centralize access to order information

National Stock Exchange of India Ltd. commenced its Cash Market segment in 1994. Over a period of two decades various changes were incorporated in the trading system to meet the changing market infrastructure. The trading volumes have also increased gradually over the period.

With the availability of newer technology and significant rise in business volumes there was need to upgrade the system to provide low latency trading system using cost effective solution.

Challenges in Meeting the Needs of the Trading Market

The trading platform was a monolithic platform which enhanced capacity by horizontally scaling mainframe machines and replicating the application. Nonetheless, as number of machines increase so do various interconnections and failure points. Moreover, the application was written in an older generation programming language over a proprietary operating system and in-memory file system. This system has run successfully for 20+ years, however due to legacy nature of design and programming language it has not been able to take advantage of the recent technology breakthroughs and changes in hardware platforms.

The Solution

G.M. Shenoy who is the CTO of NSE has been a fanatical tech innovator for years. He witnessed the needs of the market and developed a cutting edge solution ‘New Equities Trading System’. The project which was executed recently was to replace this trading system, replacing a reliable robust system running perfectly well for more then 20+ years itself was a unique expedition and this was completely done with in-house expertise of the teams within exchange and the leading IT vendors within the country.

The Benefits

The project was deployed for more than 2, 00,000 terminals across 2,000 towns and cities in the country connecting directly/indirectly to its trading system on any regular day. It helped in cost saving of around Rs. 8+ Crores per year in maintenance and project payback is one year.

There has been a 10 times increase in order processing rate; 10 times reduction in equipment cost; 60 times improvement in latency; 5 layer architecture, scalable at each layer; and a mechanism to detect failures pro-actively.

 

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