Exchange Solutions
NSEIT has a range of offerings in the Exchange space to cater to the needs of different business processes such as:
Trading System
CCP System
Surveillance System
Trading System
NEAT trading system is built on advanced technology with feature rich modules. Due to its clever design, NEAT can easily cater to Exchanges in wide range of spectrum – small regional exchanges to global exchanges. The trading system has been built to handle different kinds of instruments such as equity, derivatives, currency and interest rates. The system comes with a standard trading front end which can cater to trading member order management.
Key highlights of NEAT
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High throughput.
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Low latency.
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Reliable platform with built in contingency mechanisms.
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Usage of open systems.
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Deployment completely transparent to end users.
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Flexibility to add capacity based on business demand.
Instruments supported
Equities
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Equitiest.
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Mutual Funds.
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Exchange Traded Funds.
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Initial Public Offerings.
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Buy backs.
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Offer for sale.
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Security Lending and Borrowing Scheme.
Debt
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Fixed income securities
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Corporate Bonds.
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Wholesale debt Market.
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Retail debt Market.
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Derivatives
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Equity Derivatives.
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Currency Derivatives.
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Interest Rate Futures.
Functional Features
NEAT supports multiple modules to provide a robust trading platform such as :
Auction model / Volume maximiser
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Pre-open session.
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Call auction for illiquid stocks.
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Call auction for IPO relist securities.
Continuous Market
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Continuous Market
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Equity securities.
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Corporate debt.
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Odd lot execution
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Limited Physical (odd lot).
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Block trading window.
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Call auction for IPO relist securities.
Order conditions
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Time related conditions.
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Price-related conditions.
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Quantity related conditions.
Auction Market
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Buy in auction.
Retail Debt Market
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Government securities for retail investors.
Post close
Buy backs
SME platform
Initial Public Offerings (book building)
Offer for sale
Order Validation and Routing
Order Volume control
Market Data
Administration and Control functionalities
CCP System
The Clearing System is called NCSS and the Risk Management system for cash market is called Online Position Monitoring System (OPMS). A
similar risk management system exists for derivatives market called Parallel Risk Management System (PRISM).
Each of the CCP modules can be independently installed and run.
CCP system consists of :
Clearing & Settlement System
Risk Management System
Collateral System
NCSS
NCSS is a robust platform which has served the requirement of NSE. NCSS is a modular system catering to the entire process of CCP. The modules consist of:
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Trade Management.
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Position Management.
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Settlement.
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Exception handling.
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Additional features.
Instruments supported
Trade management
Trade details are received from external trading systems and validated and process of novation carried out. Trade enrichment such as identification of settlement agency for institutional trades is carried out through this module.
Additional features
The system provides for calculation and collection of Transaction fee, penalties and regulatory charges through the banking interface.
Exception handling
The system provides for mechanism to handle short delivery of stocks by creating an auction list.
Settlement
The system is capable of processing the following types of settlements:
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Trade for trade.
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Multi lateral netting.
Settlement process consists of :
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Delivery generation and report for the brokers.
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Security settlement details for the depository(ies).
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Funds settlement files for the settlement banks.
The system is capable of handling multiple depositories and multiple settlement banks. The Clearing members / brokers can choose which depository/bank they wish to settle their obligations.
Position Management
Position Management module provides for
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Obligation Determination.
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Give up.
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Position transfer.
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Final obligation post position transfer.
OPMS
The OPMS system ensures monitoring of margins and risk management on a real time basis to ensure Exchange/ CCP is fully risk covered.
Some of the key features of OPMS system are:
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Real-time Margin & position monitoring
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Margin calculation such as VaR, Mark to Market and exposure margin computed on real-time basis.
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Interface to collateral system for comparing collateral with margin requirement.
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Margin amount comparison with Collateral posted by clearing members on continuous basis.
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Interface with trading system for violations and suspension of trading when collateral exhausted.
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Close out facility.
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Post-trade risk management.
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Capital adequacy.
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Position limits.
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Collateral System
The collateral management system allows the CCP to maintain different kinds of collaterals collected from the clearing members for the purpose of margin. The system is capable of managing collaterals in the form of both cash and non cash instruments. For cash collaterals, interface is built with the settlement banks to receive and release cash online and intra day. Apart from cash collaterals, members can post collaterals in the form of Bank deposits and also marketable instruments. The system provides for haircut in case of marketable securities and carries out periodic valuation of the same. The collateral system is interfaced to OPMS, Settlement Banks, Custodians and members.
Surveillance System
NSEIT Surveillance System has been developed using Java, Oracle Database and Linux Shell Scripts and run on Linux Server.
The surveillance system has been architectured using the learning out of running one of the largest Exchanges in the world – National Stock
Exchange of India Ltd.
Key features
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Online real-time monitoring.
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Detects potential abnormal activity.
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Generates alerts.
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Displays statistics for analysis.
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Facilitates pattern recognition.
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Flexible alert configuration.
The core module consists of:
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Market replay facility.
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Alert generation – on line / off line.
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Pattern recognition models.
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Case management.
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Reports & analysis.
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Data analytics.
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