The domestic securities market remained largely unaffected by the global technical outage triggered by issues at cybersecurity firm CrowdStrike.
The National Stock Exchange (NSE) and BSE on Friday issued statements that it was business as usual, and that their operations remained ‘normal’, even as global exchanges like the London Stock Exchange and Singapore Exchange (SGX) saw disruptions.
The volumes in the domestic cash market and derivatives segment remained unchanged indicating no impact of the outage.
NSE cash segment clocked a turnover of Rs 1.35 trillion on Friday, against this month’s average of Rs 1.39 trillion. Meanwhile, the combined derivatives turnover for NSE and BSE stood at Rs 496 trillion compared to this month’s average turnover of Rs 467 trillion.
Experts said this could be due to cautiousness of the traders ahead of the Union Budget on Tuesday.
A few brokerage firms like Nuvama, 5Paisa, and Motilal Oswal Financial Services faced outages in the domestic market, according to reports.
Several traders complained that they were unable to square off their positions due to the outage on a weekly expiry day for options contracts.
“We have witnessed a limited impact, as our networks are built to minimise the effects of such outages on our ecosystem. We have deployed a software patch in our back office and settlement functions and reported the same to the exchanges”, said a Nuvama spokesperson.
“The system outage issue has been resolved. You can now place the orders normally,” wrote 5Paisa on X at 2:55 pm.
AngelOne too wrote on the X that the issue was resolved.
“Only a cluster of clients was impacted. There were issues at the front-end for several of them. However, on a systematic basis, the back-end remained smooth for others and there was not much impact on the overall market participants. As only a few clients were impacted, the brokers did not raise a request for the Investor Risk Reduction Access (IRRA),” said an industry official.
The IRRA mechanism, made operational in October last year, is a platform to help investors in case there is a disruption of services caused by systems belonging to trading members or brokers. Traders could use the platform to square off or close their positions.
Most of the full-service and bank-based brokers remained unaffected.
“Kotak Securities’ trading platform ‘Kotak Neo’ was unaffected during the Microsoft Cloud Outage. Our clients were able to execute trades seamlessly,” said Sandeep Chordia, COO – Kotak Securities.
First Published: Jul 19 2024 | 7:30 PM IST
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