InvestorQ : Has NSE been able to offer an explanation for the halt in trading on the NSE on 24 February?
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Has NSE been able to offer an explanation for the halt in trading on the NSE on 24 February?

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Deepa Salunkhe answered.
2 months ago
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On 24 February, the NSE faced a major halt on the indices. Just a day after the trading came to a virtual halt for a full 4 hours at the NSE, the exchange clarified that it was actually the unavailability of an online risk management system that had eventually resulted in the prolonged shutdown in the NSE trading for more than 4 hours.

While the NSE is also currently in the process of preparing a root cause analysis of the event for SEBI and the Ministry of Finance, one think that NSE has tried to underline is that it was not a trading halt but just that trading could not be opened due to the telecom link downtime creating a challenge for risk management. That had forced a downtime in NSE.

NSE also clarified that while the exchange did have multiple telecom links with two service providers to ensure redundancy, it was unfortunate that both the telecom companies faced downtime in their links. This had negatively impacted the online risk management system that is built into the NSE trading on a routine basis and which works behind the scenes.

NSE has stated that the trading was not impacted but merely due to the absence of the online risk management system the exchange was forced to halt trading in the interest of risk management on real time basis. SEBI has asked NSE to explain why trading was not automatically shifted to the disaster recovery site or the DRS, which is the standard protocol for the exchange whenever the principal site or server faces troubles.

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