NSE in its recent circular stated that its is planning to test Live trading sessions from Disaster Recovery (DR) Chennai site. It is noted that the nse authorized data vendors who are not having leaseline/VSAT connectivity with chennai exchange might not able to provide datafeed to its customers on Nov5th and Nov 7th.
Why NSE Exchange is testing Disaster Recovery Solution
According to Gartner Research, “40% of all companies that experience a major disaster will go out of business if they cannot gain access to their data within 24 hours.” so most of the big players in the industry goes for Business Continuity Planning(BCP)/Disaster Recovery.
The major advantages of establising a Disaster Recovery Site are
- Protect against calamities like earthquake, fire and flood.
- Minimizes disruption and operational losses
- Restore and build back confidence of investors, stakeholders and customers
- Manage the recovery operation in an organized and effective manner
- Manage brand image and reputation
Who will Suffer?
Retail traders and Algorithmic traders who are getting datafeed from authorized data vendors like Globaldatafeeds, Neotradeanalytics, Reliable, Spider, Icharts,Tickerplant etc might not get data from the NSE Exchange due to lack of connectivity with the NSE Disaster Recovery exchange. However Big data players in this segment like Bloomberg, Interactive Data might go for the connectivity to avoid complaints from their potential customers.
Global datafeeds in its mail to customers stated that,
We have received a communication from NSE recently (on 28th October 2014) about the same. This circular is available on NSE site and is available as a link through Circulars page. This is for the first time NSE is conducting a Live Trading Session from DR Site.
We wish to clear our stand as to why we have not taken connectivity with NSE’s Disaster Recover Site – below.
- No Utility Value – We already have independent primary and backup connectivity through different Service Telecom Providers with NSE Servers. Existing Backup Connectivity is almost redundant and is hardly used (3-4 times a year). Under this scenario, we do not see any utility value in adding another connectivity.
- No Utility Value (most important) – In last 6 years since the time we are disseminating NSE datafeed (since 2009), we have not seen a single failure where both NSE Primary and Secondary network have failed resulting in non-receipt of data. So taking connectivity with DR site is not going to have any positive effect on deliverables as it is going to remain unused (going by experience of last 6 years).
- Does not make Commercial Sense – NSE has their DR site at Chennai. Telecom Service Providers are asking for a huge sum for connectivity (in several lakhs per anum). It does not make any commercial sense for us to go for it as it is not adding any value to our deliverables. There is also considerable cost involved in maintaining this redundant connection (so that it works during actual emergencies – which we have not seen in our lifespan with NSE).
- Connectivity through internet is not available – MCX provides data through leased lines as well as internet. We have requested NSE to make similar facility available to data vendors so that they can connect to DR Site ‘on demand’ over internet (during planned mock / live sessions as well as real emergencies). This will relieve data vendor from the cost and efforts of having and maintaining a physical leased line connectivity. We are yet to hear from NSE on this.
- Like Brokers, TAP Facility is not extended to data vendors – NSE provides TAP facility to all their brokers (as can be seen in above circular). It means that brokers can select where they wish to connect (Primary site or DR Site) simply by selecting a radio button. Brokers are not required to take point-to-point connectivity with the DR site of NSE and this is managed by NSE on their behalf. We have requested DotEx to provide similar TAP facility to us (data vendors) and till the time TAP facility is ready, relay data from DR site through Primary Connection (this was done before for mock trading session from DR site) but Exchange is not ready to commit anything on the guaranteed availability of data on above dates.
From time to time, we have communicated our stand on DR site connectivity to NSE. We are hopeful that NSE will relay data through Primary Connection on above dates. But since NSE is not in a position to commit guaranteed availability, we too are not in a position to give any assurance about availability of data on above dates (realtime, historical as well as IEOD).
This is very unfortunate but we have no option. We have tried hard (and still trying) so that datafeed would be available on above dates. If we do not succeed in our efforts and if we could not disseminate data on 5th and 7th November 2014 as per this communication, we would add 2 days to your subscription (for NSE F&O and NSE CDS Subscribers) as per our policy.
Through this mail, we wish to keep you informed about the scenario. We request you to be prepared and make alternate arrangement for the datafeed on above dates (5th and 7th November 2014).
Will the customers get IEOD data after market hours?
Still no confirmation on that. Players are negotiating with the exchange and will update here once clarity is arrived.
Will my MCX feeds also gets affected?
No MCX Feeds will not be affected
Will the Brokers also face such issues?
Disclosure: Marketcalls is a reseller for Globaldatafeed products.