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Sebi issues new norms for co-location facility of bourses

Co-location or proximity hosting service is offered by stock exchanges to brokers and data vendors allowing them to locate their trading

Press Trust of India  |  New Delhi 

Sebi issues new norms for co-location facility of bourses

In order to ensure fair access to the co-location facility, markets regulator on Thursday directed to allow direct connectivity between such facility of one bourse with the other.

Co-location or proximity hosting service is offered by to brokers and data vendors allowing them to locate their trading and other systems within the premises.

have been asked to allow direct connectivity between servers of a broker placed in co-location facility of a bourse and servers of the same broker placed in co-location facility of a different bourse.

This facility should be available to all the co-located brokers, who are desirous to avail such connectivity, in a fair and equitable manner, said in a circular.

"are advised to allow direct connectivity between co-location facility of one recognised exchange and the co-location facility of other recognised exchange," it added.

While facilitating co-location facility, Securities and Exchange Board of India (Sebi) directed to put in place necessary systems for implementation of its circular within one month.

said that co-location services provided by a third party or outsourced from a third party is deemed to be provided by the exchanges.

The would have to ensure complete control and jurisdiction over the matters related to its co-location facility. Further, they will remain responsible and accountable for actions of such outsourced entity with respect to co-location services.

Also, they would have to submit a quarterly compliance report to regarding the outsourcing services after placing it before the board of the respective exchanges.

The regulator said facility that allows brokers and data vendors to connect to the exchange trading system over a Local Area Network would fall within the definition of Co-location and proximity hosting.

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Sebi issues new norms for co-location facility of bourses

Co-location or proximity hosting service is offered by stock exchanges to brokers and data vendors allowing them to locate their trading

Co-location or proximity hosting service is offered by stock exchanges to brokers and data vendors allowing them to locate their trading
In order to ensure fair access to the co-location facility, markets regulator on Thursday directed to allow direct connectivity between such facility of one bourse with the other.

Co-location or proximity hosting service is offered by to brokers and data vendors allowing them to locate their trading and other systems within the premises.

have been asked to allow direct connectivity between servers of a broker placed in co-location facility of a bourse and servers of the same broker placed in co-location facility of a different bourse.

This facility should be available to all the co-located brokers, who are desirous to avail such connectivity, in a fair and equitable manner, said in a circular.

"are advised to allow direct connectivity between co-location facility of one recognised exchange and the co-location facility of other recognised exchange," it added.

While facilitating co-location facility, Securities and Exchange Board of India (Sebi) directed to put in place necessary systems for implementation of its circular within one month.

said that co-location services provided by a third party or outsourced from a third party is deemed to be provided by the exchanges.

The would have to ensure complete control and jurisdiction over the matters related to its co-location facility. Further, they will remain responsible and accountable for actions of such outsourced entity with respect to co-location services.

Also, they would have to submit a quarterly compliance report to regarding the outsourcing services after placing it before the board of the respective exchanges.

The regulator said facility that allows brokers and data vendors to connect to the exchange trading system over a Local Area Network would fall within the definition of Co-location and proximity hosting.
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Business Standard
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Sebi issues new norms for co-location facility of bourses

Co-location or proximity hosting service is offered by stock exchanges to brokers and data vendors allowing them to locate their trading

In order to ensure fair access to the co-location facility, markets regulator on Thursday directed to allow direct connectivity between such facility of one bourse with the other.

Co-location or proximity hosting service is offered by to brokers and data vendors allowing them to locate their trading and other systems within the premises.

have been asked to allow direct connectivity between servers of a broker placed in co-location facility of a bourse and servers of the same broker placed in co-location facility of a different bourse.

This facility should be available to all the co-located brokers, who are desirous to avail such connectivity, in a fair and equitable manner, said in a circular.

"are advised to allow direct connectivity between co-location facility of one recognised exchange and the co-location facility of other recognised exchange," it added.

While facilitating co-location facility, Securities and Exchange Board of India (Sebi) directed to put in place necessary systems for implementation of its circular within one month.

said that co-location services provided by a third party or outsourced from a third party is deemed to be provided by the exchanges.

The would have to ensure complete control and jurisdiction over the matters related to its co-location facility. Further, they will remain responsible and accountable for actions of such outsourced entity with respect to co-location services.

Also, they would have to submit a quarterly compliance report to regarding the outsourcing services after placing it before the board of the respective exchanges.

The regulator said facility that allows brokers and data vendors to connect to the exchange trading system over a Local Area Network would fall within the definition of Co-location and proximity hosting.

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Business Standard
177 22

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