NSE says unavailability of online risk management system led to shutdown

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Mumbai: Largest stock bourse NSE on February 25 said the unavailability of an ‘online risk management system’ led to the nearly four hour shutdown of trading on February 24.

It is also awaiting a detailed root cause analysis from its telecom service providers and vendors regarding the incident, the exchange said.

Explaining the series of events leading to the shutting down of trading, the NSE said it has multiple telecom links with two service providers to ensure redundancy and the two telcos informed it about “instability of all their links”.

This instability resulted in an impact to the online risk management system, which is configured in a ‘high availability’ mode, it said, adding that there was no impact to trading.

“Given that the online risk management system was unavailable, market functioning could not continue normally and hence had to be shut down,” it said.

The exchange said it was continuously working on resolution of the problem and once the same was resolved, it made an announcement on re-opening of the markets.

It was also in contact with capital markets regulator SEBI and keeping it updated about the developments, the statement added.

SEBI has asked NSE to do a root cause analysis about the incident and submit a report at the earliest, and also asked for an explanation as to why trading did not shift to a disaster recovery site in face of troubles.