MANU/SSMD/0016/2015

Ministry : Securities and Exchange Board of India

Department/Board : Market Regulation Department

Circular No. : CIR/MRD/DP/17/2015

Date : 08.10.2015

To

All Stock Exchanges
All Clearing Corporations.

Dear Sir / Madam,

Review of the capacity planning framework of stock exchanges and clearing corporations

This has reference to the circulars dated June 16, 1998 and August 06, 2008, wherein the following requirement was inter alia specified as an eligibility criteria to be complied by the stock exchange while providing trading platforms in equity derivative and currency derivatives segments respectively.

"The per-half-hour capacity of the computers and the network should be at least 4 to 5 times of the anticipated peak load in any half hour, or of the actual peak load seen in any half-hour during the preceding six months."

2. Being critical infrastructure of the securities market, it is imperative for the stock exchanges and clearing corporations to continuously assess and monitor their system capacities. Over the years, stock exchanges and clearing corporations have experienced increase in volumes owing to the growth of the market and have accordingly taken steps to increase capacities of their trading, clearing and settlement infrastructure.

3. The framework adopted by the stock exchanges and clearing corporations for planning of their capacities was recently reviewed by the Technical Advisory Committee (TAC) of SEBI. Based on the recommendation of the committee, it has been decided to direct stock exchanges and clearing corporations to ensure the following requirements while planning capacities of their trading, clearing and settlement and risk management related infrastructure:

i. The installed capacity shall be at least 1.5 times (1.5x) of the projected peak load.

ii. The projected peak load shall be calculated for the next 60 days based on the per-second peak load trend of the past 180 days.