SEBI's Strategic Measures Enhance Resilience in Trading Outages

SEBI introduces new guidelines to manage trading outages in stock exchanges, focusing on interoperable segments. These measures include creating backup contracts and requiring exchanges to provide hedging options for identical products. NSE and BSE will serve as backup venues for each other to ensure seamless trading continuity.

The Securities and Exchange Board of India (SEBI) unveiled new guidelines on Thursday to tackle trading disruptions amid technical outages, especially within interoperable market segments like equities, derivatives, and currency markets.

The regulator's strategies focus on strengthening Business Continuity and Disaster Recovery mechanisms, urging exchanges to allow for hedging positions across platforms during outages with netted-off margins.

Measures also include the creation of 'reserve contracts' for stocks or derivatives exclusive to one exchange, ensuring uninterrupted trading. SEBI mandated notification protocols and encouraged the introduction of correlated index derivatives for broader hedging options.

(With inputs from agencies.)