Indian RPT traders face ‘absolute havoc’ as stock market suffers four-hour hiatus
(Repeats item that first aired on Wednesday)
MUMBAI, Feb.25 (Reuters) – India’s largest stock exchange closed for nearly four hours on Wednesday due to what it called a telecommunications network problem, and its operators have drawn traders on fire for a lack of transparency on the problem, which they said was having “absolute havoc.”
The National Stock Exchange opened around 9:15 a.m. local time as usual, but traders said the prices of its major indices stopped updating about an hour later.
At 11:40 a.m., the NSE closed its doors completely for trading, leaving traders wondering what would happen to their open positions.
The incident happened just before the monthly derivative expiration on the last Thursday of the month, when traders close or roll over their open positions.
“It was an absolute disaster because you have to communicate this proactively. No one in the market knew they would close the stock market, ”Varun Khandelwal, director of Bullero Capital, an exclusive New Delhi-based trading company.
The first public news of the 11:40 a.m. shutdown arrived via social media and wider media about 20 minutes later.
The NSE said it has multiple telecommunications links with two service providers, but has issues with both.
“People believed things would come back in half an hour or an hour. But this complete lack of transparency on NSE’s part has taken absolute havoc, ”said Jimeet Modi, founder of brokerage firm Samco Securities.
The NSE did not respond to a request for comment.
Trading resumed after almost four hours and the exchange extended market hours until late in the evening.
The NSE Nifty 50 index finally ended the day up 1.9%, with financial stocks rising after the Finance Ministry announced that private sector lenders could carry out government transactions such as taxes and payments. pension.
Market participants wondered why the NSE did not have a backup plan, especially after experiencing a similar five-hour shutdown in 2017.
In the evening, the Indian market regulator asked the NSE to conduct a “detailed root cause analysis” and explain the reasons why trade is not migrating to a disaster recovery site.
Anup Khandelwal, chairman of the National Stock Exchanges Members Association of India, said Reuters investors and brokers lost money as many began closing open positions at lower prices on BSE Ltd., another exchange that rivals the NSE.
Zerodha, the country’s leading brokerage firm that claims to contribute over 15% of all retail trading volume in India, has sent out several mobile app alerts to its users and said it is in talks with the NSE.
On Twitter, #zerodha became one of the most popular hashtags as worried users asked about their portfolios.
“The sad state of the glitch today is that no one will take responsibility for the losses of traders. Not just any broker and not even @NSE, ”said Twitter user Rushikesh T. (Reporting by Abhirup Roy in Mumbai and Aditya Kalra in New Delhi; Editing by Hugh Lawson)