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FAQs for Non NEAT Front End Approval


Background:

NSE offers to its trading members, a facility, by which members can use their own trading front-end software in order to trade on the NSE trading system. This facility is referred to as ‘Non NEAT Front End’ (NNF facility) and is available to all members of the Exchange.

‘Software’ shall mean electronic systems or applications used by trading members for connecting to the Exchange and for the purposes of trading and real-time risk management, including software used for Computer to Computer Link (CTCL), Internet Based Trading (IBT), Securities Trading through Wireless Technologies (STWT), Direct Market Access (DMA), Smart Order Routing (SOR) and Algorithmic Trading (AT).

Members have the option to use their own software running on any suitable hardware/software platform of their choice. This software, which is a replacement of the NEAT front-end software, is used by members to trade on the NSE trading system. The dealers of the member may trade using the software, through the member’s own private network, subject to approvals from Department of Telecommunication etc. as may be required in this regard.

Internet based trading takes place through order routing systems, which will route client orders, to exchange trading systems, for execution of trades on the existing stock exchanges.
Securities Trading using Wireless technology includes devices such as mobile phone, laptop with data card, etc. that use Internet Protocol (IP).

No. Only SEBI registered brokers who provide IBT are eligible to provide STWT. All relevant requirements applicable to IBT are also applicable to STWT.

Direct Market Access (DMA) is a facility which allows brokers to offer clients direct access to the exchange trading system through the broker’s infrastructure without manual intervention by the broker.

 

Smart Order Routing allows the brokers trading engines to systematically choose the execution destination based on factors viz. price, costs, speed, likelihood of execution and settlement, size, nature or any other consideration relevant to the execution of the order.

Any order that is generated using automated execution logic is known as algorithmic trading.

Presently, there are 3 options available to members:

  • NNF software may be developed by member in-house teams/non-empanelled vendors.
  • NNF software can be procured through Exchange Empanelled Vendors.
  • NNF software can be availed through the services of an Application Service Providers (ASPs) empanelled with the Exchange to offer such services.

Register with the Exchange as an in-house member.
Apply for access to the Exchange Test market environment

Members who opt to use their own trading front-end software (i.e. software developed by their in-house teams or non-empanelled vendors) in order to trade on the NSE trading system are known as ‘In-House’ Members.

Members are required to submit their application for in-house registration on online portal ENIT. Refer NSE circular Ref. No. NSE/MSD/42427 dated October 18, 2019.

Yes. The charges are Rs.1, 50,000 (one time charge) + Rs.50, 000 (recurring annual charge) + applicable taxes.

Payment for the same is collected from the Member’s Exchange Dues account.

Members have to refer to Exchange provided documents that describe the protocol to be used for Non-NEAT Front-end (NNF) applications to communicate with the Exchange's Trading System, known as Application Programming Interface (API). These are available on the Exchange website at: https://www.nseindia.com/trade/platform-services-neat-trading-system-protocols

I. Submission of NNF Undertaking for In-House: Members need to submit an NNF undertaking before seeking approval for the NNF software. Members can place their request through ENIT-NEW-TRADE and access the module at path: TRADING > NNFAPPROVAL> UNDERTAKING SUBMISSION (In-House). Documents to be submitted in case of Initial Undertaking:

  1. NNF Undertaking on Stamp Paper (Physical copy to be submitted to exchange)
  2. Board Resolution
  3. Notarised Network Diagram

Documents to be submitted in case of Subsequent Undertaking for In-House:

  1. Board Resolution
  2. Notarised Network Diagram      

Member need not submit the physical copy of Network Diagram and Board Resolution.

II. In-House Registration: Member can submit online application for registration of In-House facility under undertaking submission in NEW-ENIT-TRADE. Member can submit the request at path:

TRADING > NNFAPPROVAL > UNDERTAKING SUBMISSION (In-House).

Post submission of the undertaking and In-House Registration, members can proceed with submitting of applications through the online portal ENIT. Members can refer Annexure 1 for the list of documents to be submitted for both new as well as modified software/systems developed in-house or by non-empanelled vendors while applying on ENIT.

SOR: Refer circular NSE/CMTR/17073 for additional documents to be provided with SOR Product Write-up. (Note: Presently, SOR application is received in physical format)

DMA: Refer circular NSE/CMTR/12289 for additional documents to be provided with DMA Product Write-up.

The member can procure NNF software from the vendors empanelled with the exchange. The list of Exchange empanelled vendors is available on the Exchange website at https://www.nseindia.com/trade/platform-services-non-neat-empanelled-vendors-of-the-exchange

Members need to submit an NNF undertaking before seeking approval for the NNF software.

I. Submission of Initial NNF Undertaking with Exchange Empanelled vendor: Members can place their request through ENIT-NEW-TRADE and access the module at path:

TRADING > NNFAPPROVAL> UNDERTAKING SUBMISSION.

Documents to be submitted in case of Initial Undertaking:

  1. NNF Undertaking on Stamp Paper (Physical copy to be submitted to exchange)
  2. Board Resolution 
  3. Notarised Network Diagram
     

II. Subsequent Undertaking:  Members are required to submit subsequent undertaking each time they procure software from an additional vendor. Documents to be submitted (on ENIT) in case of Subsequent Undertaking

  1. Board Resolution
  2. Notarised Network Diagram

Member need not submit the physical copy of Network Diagram and Board Resolution.

Post submission of the undertaking, members can proceed with filing of applications through the online portal ENIT. Members can refer Annexure 2 for the list of documents to be submitted for both new as well as modified software offered by Exchange empanelled vendors.

(Note: Presently, SOR application is received in physical format)

The list of Application Service Provider’s empanelled with the Exchange is available on the Exchange website at https://www.nseindia.com/trade/platform-services-non-neat-empanelled-vendors-of-the-exchange. Members desiring to avail ASP services are required to submit their applications to the respective ASP. Members can refer NSE circular ref no NSE/MSD/41333 dated 17th June 2019 regarding the list of documents to be submitted to ASPs for NNF software approval.

For all the information related to approval process and formats, members can refer to circular reference number NSE/MSD/41332 dated June, 17th 2019.

Yes, you can surrender your NNF product approvals. However before submitting your surrender request, members are advised to disable all user IDs activated under the respective products.

For CTCL & DMA Facility, members may submit their surrender request to the Exchange on letterhead along with details of product name, segment and version number to be surrendered. In case the member opts to use the surrendered product in future, he will be required to seek fresh approval for the same.

The above product approvals can be surrendered in ENIT. Please follow the below the steps:

  • For IBT - Go to NNF processing > NNF surrender > select IBT > submit
  • For STWT - Go to NNF processing > NNF surrender > select STWT > submit
  • For Algo - Go to NNF processing > NNF surrender > select Algo > Name of Strategy > submit

You can reach the Member Service Department at 1800 266 0050 (Option 1) or email us at msm@nse.co.in

  

  New Modification
Software New Software/Product+ New Server New Software/Product (Without Server Change) No-Change in Product (Wherein RMS/OMS/Feature /Functionality not changing)   No-Change in Product but Change in Server Only Product Change Product and Server Change
CTCL A, B1, B2, Network Diagram + Product and RMS Writeup B1, B2, Network Diagram + Product and RMS Writeup B1 and No Change Letter A, B1, No Change Letter B1, B2, Product & RMS Writeup A, B1, B2, Product and RMS Writeup
ALGO A, B1, B2, Network Diagram + Product and RMS Writeup B1, B2, Network Diagram + Product and RMS Writeup B1 and No Change Letter A, B1, No Change Letter B1, B2, Product & RMS Writeup A, B1, B2, Product and RMS Writeup
IBT A, B1, B2, Network Diagram + Product and RMS Writeup B1, B2, Network Diagram + Product and RMS Writeup B1 and No Change Letter A, B1, No Change Letter B1, B2, Product & RMS Writeup A, B1, B2, Product and RMS Writeup
STWT A, B1, B2, Network Diagram + Product and RMS Writeup B1, B2, Network Diagram + Product and RMS Writeup B1 and No Change Letter A, B1, No Change Letter B1, B2, Product & RMS Writeup A, B1, B2, Product and RMS Writeup
DMA A, B1, B2, Network Diagram + Product and RMS Writeup B1, B2, Network Diagram + Product and RMS Writeup B1 and No Change Letter A, B1, No Change Letter B1, B2, Product & RMS Writeup A, B1, B2, Product and RMS Writeup
SOR A, B1, B2, Network Diagram + Product and RMS Writeup B1, B2, Network Diagram + Product and RMS Writeup B1 and No Change Letter A, B1, No Change Letter B1, B2, Product & RMS Writeup A, B1, B2, Product and RMS Writeup


For SOR: Refer circular NSE/CMTR/17073 for additional documents to be provided with SOR Product Write-up.

For DMA: Refer circular NSE/CMTR/12289 for additional documents to be provided with DMA Product Write-up.

Annexures: Refer circular 41332 for Annexure

A - Audit Report

Software

CTCL/Algo/IBT/STWT/DMA/SOR

B1 - Auditor's Certificate

Request type

New/Modification/No change

B2 - Auditor's RMS Certificate

 

 

D - No Change Letter

 

 

  New Modification
Software New Software/ Product+ New Server New Software/Product (Without Server Change) No-Change in Product (Wherein RMS/OMS/Feature /Functionality not changing) No-Change in Product but Change in Server Only Product Change Product and Server Change
CTCL A, B1, Network Diagram B1 and Network Diagram B1 A, B1 B1 A and B1
ALGO A, B1, Network Diagram and Vendor Confirmation B1, Network Diagram and Vendor Confirmation B1 and Vendor Confirmation Letter A, B1 and Vendor Confirmation Letter B1 and Vendor Confirmation A, B1 and Vendor Confirmation
IBT A, B1, Network Diagram B1 and Network Diagram B1 A, B1 B1 A and B1
STWT A, B1, Network Diagram B1 and Network Diagram B1 A, B1 B1 A and B1
DMA A, B1, Network Diagram B1 and Network Diagram B1 A, B1 B1 A and B1
SOR A, B1, Network Diagram B1 and Network Diagram B1 A, B1 B1 A and B1


For SOR: Refer circular NSE/CMTR/17073 for additional documents to be provided with SOR Product Write-up.

For DMA: Refer circular NSE/CMTR/12289 for additional documents to be provided with DMA Product Write-up.

Annexures: Refer circular 41332 for Annexure

A - Audit Report

Software

CTCL/Algo/IBT/STWT/DMA/SOR

B1 - Auditor's Certificate

Request type

New/Modification/No change

B2 - Auditor's RMS Certificate

 

 

D - No Change Letter

 

 

Download FAQs for Non NEAT Front End Approval (.pdf) 

Disclaimer:

“This FAQ summarizes the changes with respect to Non NEAT Front End Approval Process in a concise manner for the Member’s ease of understanding. The information and/ or content (collectively ‘Information’) provided herein is general information only and NSE has issued detailed circulars to that effect from time to time, as referred herein. While reasonable care has been exercised to ensure that the Information is adequate and reliable, no representation is made by NSE as to its accuracy or completeness and NSE, its affiliates and subsidiaries accept no liability of whatsoever nature for any direct or consequential loss, including without limitation any loss of profits, arising from reliance on this Information. The readers are expected to undertake their own diligence and are advised not to solely rely on this document. Any such reliance shall be at the reader’s own risk. Nothing stated herein shall bind NSE, in any manner whatsoever.”

Updated on: 16/01/2020 12:00
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