In its circular, Sebi said that exchanges and clearing houses in the commodity derivatives segment will be required to maintain installed system capacity of at least twice (2x) the expected peak load.
Until now, 2016 guidelines required commodity exchanges to maintain a trading system capacity of at least four times peak load.
The latest move follows industry representations and consultations with Sebi’s Technical Advisory Committee (TAC) and aims to strengthen the robustness, scalability and oversight of the critical IT infrastructure that supports commodity derivatives trading.
In addition, if the actual capacity utilization of any component exceeds 75 percent of the installed capacity, the exchange or clearing company must immediately take corrective action, such as tuning the system or increasing capacity.
The framework for dealing with such situations should be clearly included in the institution’s capacity planning and real-time performance monitoring policies, and oversight will be exercised by the Standing Committee on Technology (SCOT). The regulator has asked exchanges and clearing companies dealing in commodity derivatives to prepare and submit to it their revised policies for capacity planning and real-time performance monitoring within three months from the date of the circular, after receiving approval from SCOT and their board of directors.
The new framework will come into effect three months after issuance.
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