NSE says waiting for 'detailed root cause analysis' on trading halt, in contact with Sebi
Traders and brokers had criticised the NSE over the lack of information after the four-hour shutdown on WednesdayTrading shut down and re-open were done after giving due notice to the market, it said
The National Stock Exchange (NSE) on Friday issued a statement defending its communication over the reopening of the bourse after an unexpected shutdown on 24 February. The NSE had announced that the exchange had shut at 11:40 a.m. on 24 February due technical glitch. It announced market re-opening at about 3:17 p.m., by which time many brokers had closed their investors' open positions. Traders and brokers had criticised the NSE over the lack of information after the four-hour shutdown on Wednesday. "This communication was done only after there was visibility and clarity on resumption of services and any prior communication would not have been appropriate," NSE said in a statement.
The Association of National Stock Exchange Members of India (Anmi) also blamed the NSE for losses caused to day traders due to the technical glitch.
"NSE has multiple telecom links with two service providers to ensure redundancy and we received communication of instability of the links from both the service providers," India’s largest stock exchange mentioned.
"Post shut down of trading on NSE, we considered all the available alternatives on hand including invocation of DR to decide on the course of action that would bring up the market at the earliest with least disruption to market participants and post evaluation, a decision was taken to bring up the systems at the primary site," it further added.
"Trading shut down and re-open were done after giving due notice to the market. In order to ensure orderly opening of the market, all outstanding orders were cancelled and a pre-open session was conducted to discover re-open price and then the markets were opened. It is important to note that there was no impact on trades executed before the market shut down at 11:40 am. The process followed is as per international best practices," it further explained.
Securities and Exchange Board of India (Sebi) on Thursday said it will take all necessary measures to ensure rectification of the underlying causes such as addressing institutional deficiencies. "NSE was in close contact with SEBI and keeping them updated of developments," stock exchange said.
NSE is awaiting detailed root cause analysis from our vendors regarding this incident, it added.
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