NSE hit with another technical glitch

NSE was hit by another major technical glitch as prices for several stocks stopped updating on the screen. The recent glitch on NSE comes exactly after the exchange had to be shut down in February last year due to glitches in the servers, raising several questions on the technology and its automation.

The brokers said that even when the stock prices were not updating on the screen, the trade orders were executed if punched. Also, the derivatives segment that has a higher churn, was working even when cash prices were not updating. They further added that it was necessary to investigate if co-location, proximity hosting servers, suffered the same glitch or was the price halt on the screen only for non-co-location traders.

According to the NSE statement, “Trading in all segments is functioning normally. However, NIFTY and BANKNIFTY indices are intermittently not getting broadcasted. The Exchange is working on resolving the issue and shall keep the members informed”.

The brokers also emphasised to investigate the server technology of NSE thoroughly because when cash markets stop working the same should happen to the derivatives market. The servers are supposed to have certain ‘auto trip’ technology, which means that even when one segment of the markets i.e., cash or derivatives was not working, the other is tripped automatically to save any chaos and possibility of price manipulation.