SEBI Proposes IT Capacity Boost for Commodity Exchanges
SEBI has proposed that commodity exchanges and clearing corporations maintain IT system capacities at twice the projected peak load, unraveling underutilization and promoting operational resilience. This initiative seeks to fill regulatory gaps and standardize practices across the market infrastructure ecosystem.
- Country:
- India
On Monday, the Securities and Exchange Board of India (SEBI) made a significant proposal requiring all commodity exchanges and clearing corporations to double their installed IT system capacities compared to the projected peak load. This move is aimed at addressing the notable underutilization of IT infrastructure within the commodity segment.
Currently, the guidelines from 2016 necessitate commodity exchanges to possess a trading system capacity four times that of the peak load. However, there are no such specific provisions for clearing corporations, prompting SEBI's regulatory proposal to ensure symmetry across the market infrastructure network.
The draft circular outlines several strategies, including forward-looking capacity planning, mandatory quarterly stress testing, and automated alert systems to identify real-time performance issues. Public comments on this framework are invited by July 20, with a final implementation roadmap expected shortly after.
(With inputs from agencies.)
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