Lokesh Madan Lokesh Madan is a strategy business consultant for various high frequency trading companies worldwide with more than 12 years of experience in financial technology, research work and business development

In Depth Study on Software Vendor Empanelment at NSE India

2 min read

India Delhi (7/1/2014) : SEBI allowed all exchanges to go for online trading in year 2000.After that NSE release his Circular no. NSE/CMO/0029/2000 dated December 19, 2000 regarding Empanelment of Vendors for CTCL facility / Internet Based Trading Services. After release of this circular various software company apply for empanelment & first one is Financial Technology Odin product.

To enable the vendors/members to utilize the Program Trading/ CTCL / Internet based trading facility, the Exchange provides technical specifications (message formats/protocols etc) for the interface with the Exchange’s trading system in the form of a NNF document separately for CM and F&O segments. The NNF documents will now be made available to all members free of cost. This NNF document is used by the trading system to build tools for analysis, risk management and decision support for their own trading activities.

IN year 2003 NSE revise their fee for Empanelment & is now for commercial purpose – 22500$ USD one time & 5600$ USD per annual & for In House development is 3400$ USD one time & 1120$ USD per annual. Above mention charges are valid for both segments. Time taken by NSE to approve Software Vender Under empanelment is near about 3 to 4 Months.

Now the important point If your Algo/DMA/CTCL software provider does not have their registered office in India Then they can not be part of Indian NSE empanelment list. But you can use them as they fall under Circular No. 003 / 2011 Registration of Foreign Independent Software Vendors (ISVs).According to this circular fee is same as Empanelment Venders.

 
There are some laws related to selling of AlgoTrading Platform for empanelment or In-house Vendors may sell source code / APIs to trading members only after securing prior written approval of the NSE India for the same.

After Empanelment Vendors shall provide a complete list of user ids to the Exchange on an half yearly basis (on or before 10th July for the six months Jan – June and 10th January for the six months July – Dec).

In case of Empanelment Venders Sale of unlimited licenses shall not be permitted by NSE India. In starting But from 2005 NSE released circular that Empanelment Vender can sell unlimited licenses but they have to intimate Exchange.

Right Now there are only 13 Empanelment Software’s Vender under NSE List. List as follows: M/s. 3i Infotech Technologies Ltd, M/s. Dion Global Solutions Ltd, M/s. Financial Technologies (India) Ltd, M/s. Geojit Technologies Pvt. Ltd, M/s. Greeksoft Technologies Pvt. Ltd, M/s. Marketplace Technologies Pvt. Ltd., M/s. NSE.IT Ltd , M/s. Omnesys Technologies Pvt. Ltd., M/s. SunGard Solutions (India ) Pvt. Ltd, M/s. Tata Consultancy Services Ltd & M/s. Techspan India Ltd.

List of NSE Members those are using In House & ISV Foreign is very big right now its near about 345.

For Reference

The Exchange has issued circular no.NSE/CMO/0235/2005 dated Aug 24, 2005 (Download No.NSE/CMTR/6552) regarding detailing requirement and procedures to be complied with by members desirous of using the CTCL facility.
Vendors desirous of being empanelled with the Exchange for providing CTCL solutions to the trading members of the Exchange can refer to circular no.NSE/CMO/0029/2000 dated December 19, 2000 (Download No.NSE/CMT/2174), circular no.NSE/CMO/0039/2001 dated December 14, 2001 (Download No.NSE/CMTR/3054) and circular no.NSE/CMO/10 dated January 28, 2003 (Download No.NSE/CMTR/3896) detailing the requirements and procedures to be complied with by vendors for empanelment.

Lokesh Madan Lokesh Madan is a strategy business consultant for various high frequency trading companies worldwide with more than 12 years of experience in financial technology, research work and business development

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