Products & Services

NSE chose to harness technology in creating a new market design. It believes that technology provides the necessary impetus for the organization to retain its competitive edge and ensure timeliness and satisfaction in customer service.

The various application systems that NSE uses for its trading as well clearing and settlement and other operations form the backbone of the Exchange. The application systems used for the day-to-day functioning of the Exchange can be divided into
(a) Trading Applications and
(b) Other Applications.

Trading Applications

Overview

NSE offers superior technology and trading efficiency for all market participants. NSE's complete electronic trading floor increases speed of execution and provides unsurpassed capacity that ensures orders being processed in sub milliseconds. Trading platform provides

  • Versatility
  • Speed
  • Transparency &
  • Reliability

Superior Technology

In a High Frequency Trading (HFT) environment where milliseconds matter and best execution is paramount, NSE provides the most widely used & reliable trading venue in the country.

NSE's trading platform is renowned for its high performance technology and proven reliability with 99.999% uptime. Host end uses a layered approach and has various functional sub systems which can scale independently based on the needs of business. In-memory database is used within the various layers to ensure least possible time for transaction processing thereby ensuring low latency.

By utilizing modern satellite technology, terrestrial leased line network and internet, users across the globe are connected to the trading platform. Users can use NSE provided fully automated screen known as NEAT (National Exchange for Automated Trading) /NEATPLUS for trading or alternatively can use their own front ends, order management servers (OMS) or Independent Software Vendors (ISV) provided front ends/ OMS to connect into the trading platform.

  • NEAT-CM system takes care of trading of securities in the Capital Market segment that includes equities, debentures/notes as well as retail Gilts. The application runs on three Stratus systems with communication over TCP IP protocol. This is a direct interface with the trading members of the CM segment of the Exchange for entering the orders into the main system.

  • NEAT-F&O system takes care of trading of securities in the Futures and Options (F&O) segment that includes Futures on Index as well as individual stocks and Options on Index as well as individual stocks. This is a direct interface with the trading members of the F&O segment of the Exchange for entering the orders into the main system.

  • NEAT-WDM system takes care of trading of securities in the Wholesale Debt Market (WDM) segment that includes Gilts, Corporate Bonds, CPs, T-Bills, etc. This is a direct interface with the trading members of the WDM segment of the Exchange for entering the orders/trades into the main system.

  • Neat-IPO system is an interface to help the initial public offering of companies which are issuing the stocks to raise capital from the market. This is a direct interface with the trading members of the CM segment who are registered for undertaking order entry on behalf of their clients for IPOs. NSE uses the NEAT IPO system that allows bidding in several issues concurrently.

  • NEAT- MF system is an interface with the trading members of the CM segment for order collection of designated Mutual Funds units.

  • NEAT- CD system provides interface for trading in currency derivatives and Interest Rate Futures.

  • NEATPLUS is a multi-market front end application NEATPlus to its members. This application provides a common trading platform to NSE members to trade in Capital Market as well as Futures and Options Market segments at NSE. Members can take login in CM and F&O segments in a single terminal with ability to monitor and trade in Equity securities as well as Equity derivatives from single screen.

    The exchange also provides a facility to its members to use their own front end software through the CTCL (computer to computer link) facility. The member can either develop his own software or use products developed by CTCL vendors.

  • NOW NSE is also offering internet based trading services to NSE members. This facility is branded as NOW 'Neat on Web' NOW provides an internet portal for NSE members and their authorized clients to transact orders and trades to the various market of NSE viz. CM, F&O and Currency. The members can also access NOW through their existing VSAT/ Leased line, in addition to internet links. The various features provided by NOW are (a) comprehensive Administration features, flexible risk management system, high speed dealer terminals and online trading facility for investors.

Other Applications

  • Nationwide Clearing and Settlement System (NCSS) is the clearing and settlement system of the NSCCL for the trades executed in the CM segment of the Exchange. The system has 3 important interfaces - OLTL (Online Trade loading) that takes each and every trade executed on real time basis and allocates the same to the clearing members, Depository Interface that connects the depositories for settlement of securities and Clearing Bank Interface that connects the 13 clearing banks for settlement of funds. It also interfaces with the clearing members for all required reports. Through collateral management system it keeps an account of all available collaterals on behalf of all trading/ clearing members and integrates the same with the position monitoring of the trading/clearing members. The system also generates base capital adequacy reports.

  • Future and Options Clearing and Settlement System (FOCASS) is the clearing and settlement system of the NSCCL for the trades executed in the F&O segment of the Exchange. It interfaces with the clearing members for all required reports. Through collateral management system it keeps an account of all available collaterals on behalf of all trading/clearing members and integrates the same with the position monitoring of the trading/clearing members. The system also generates base capital adequacy reports.

  • Currency Derivatives Clearing and Settlement System (CDCSS) is the clearing and settlement system for trades executed in the currency derivative segment. Through collateral management system it keeps an account of all available collateral on behalf of all trading /clearing members and integrates the same with the position monitoring of the trading/clearing members. The System also generates base capital adequacy report.

  • Surveillance system offers the users a facility to comprehensively monitor the trading activity and analyze the trade data online and offline.

  • Online Position Monitoring System (OPMS) is the online position monitoring system that keeps track of all trades executed for a trading member vis-a-vis its capital adequacy.

  • Parallel Risk Monitoring System (PRISM) is the parallel risk management system for F&O trades using Standard Portfolio Analysis (SPAN). It is a system for comprehensive monitoring and load balancing of an array of parallel processors that provides complete fault tolerance. It provides real time information on initial margin value, mark to market profit or loss, collateral amounts, contract-wise latest prices, contract-wise open interest and limits. The system also tracks online real time client level portfolio base upfront margining and monitoring.

  • Parallel Risk Monitoring System - Currency Derivatives (PRISM-CD) is the risk management system of the currency derivatives segment. It is similar in features to the PRISM of F&O Segment.

  • Listing system captures the data from the companies which are listed in the Exchange for corporate governance and integrates the same to the trading system for necessary broadcasts for data dissemination process.

  • Membership system keeps track of all required details of the Trading Members of the Exchange.

NSE's Nationwide Network

The exchange operates and manages a nationwide network. This network includes 9 POPs (Points of Presence) setup across the country and catering to 3070+ leased lines. All the POP's are connected to DC and DR over high Speed links (Mainly STM's). All the members are given a 2mb point to point connection to the nearest POP. All the members have a choice of selecting the POP's based on their office location. Also there are plans to setup additional POPs based on member requirements. The old X.25 VSAT and Leased Line network has been decommissioned completely.

NSE's existing POPs are build on highly redundant infrastructure connecting to Core and DR setup via high speed redundant backbone links from multiple service providers. Mini POP with low connectivity requirement is fully owned and operated by NSE is proposed to be built in with redundant Infrastructure at Rajkot. Member links would terminate at Mini POP and the traffic would be routed via a dual backbone pipe to nearby Mini POP.

Colocation

In keeping with global trends, the Exchange has provided members a co-location facility for low latency high frequency trading. The Co-location data center is an international standard, state of the art, robust, highly redundant and secure infrastructure data center, built at the BKC premises. This data center has a capacity of 100+ full racks and 28 half racks.

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The higher the Percent of Deliverable Quantity to Traded Quantity the better - it indicates that most buyers are expecting the price of the share to go up.

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