Technical snag hits BSE, trading halts for 3 hours
Jul 03 2014
Bourse to submit root cause analysis report to its board, Sebi
This was the fourth time in 2014 that the BSE faced technical glitches in the trading platform and longest ever shutdown in trading by the oldest stock exchange in Asia. After opening for trades at 9.15, BSE Sensex moved up to touch a new high but at 9.42 am the exchange announced that it is suspending trading in all market segments due to technical issues and it is working with technology vendor HCL to resolve the problem.
It took more than three hours for the exchange to fix the network outage. Trading was resumed at 12.15 pm.
In a hurriedly called press conference, BSE MD & CEO Ashish Chauhan said, “BSE network connects to more than 10,000 primary connections with all telecom vendors in India...and every day, more than 8,000 connections log in. But today at 9.42 am, the number of primary connections had come down to less than 2,000 and hence market needed to be closed as per current regulations applicable to closure of markets.”
Meanwhile, market regulator Securities and Exchange Board of India (Sebi) sought a report from the exchange on the suspension of trades.
“BSE, along with its vendors HCL Comnet and Cisco, will prepare a root cause analysis report and that will be submitted to BSE board as well as Sebi,” Chauhan said.
The report will contain the details of the incident, the reasons for the same and how it was repaired, he added.
BSE has also decided to cancel the orders that were carried out in the early trade. But the exchange refused to divulge details of the quantum of orders before the network outage.
Frequent technical hitches in the exchange are tarnishing the image of the oldest stock exchange in Asia, which is trying to challenge the dominance of its rival, the National Stock Exchange, in both the cash and derivatives market.
“BSE management is acutely aware of the need to operate the markets on continuous basis with minimum market disruption. It has taken all the steps required to achieve this objective and will continue to take all actions necessary to ensure that the markets function without any disruption in future,” BSE CEO said.
The market had very subdued trading session today after the huge rally witnessed in the past three trading sessions.
Both the BSE Sensex and the NSE Nifty closed marginally lower. BSE turnover was just Rs 1,429 crore as against NSE’s Rs 19,466 crore in the cash market. The turnover on BSE on Wednesday was Rs 4,316 crore.