Trding finally resumed at the National Stock Exchange (NSE), albeit cautiously, at around 12:22pm after a technical glitch halted systems at 9:55am. After resuming briefly at 11:15am, trading in the cash segment was suspended again due to a technical glitch. Earlier at 9:55am, trading in both – cash and the futures & options (F&O) segments – came to a grinding halt. According to reports, individual stock prices were not getting updated on the system and investors failed to place orders.
"Due to technical reasons in cash market, trading has been stopped in both Cash and F&O segment of NSE. The technical team of NSE is looking into the issue. Market re-open time will be intimated shortly," NSE said in a statement.
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“Technical glitches can happen and exchanges will have to work to resolve such issues. They have an issue of addressing the traders / orders that are there in the system that needs to be resolved on a priority basis. How will an intermediary handle the stuck orders in the system is always a big challenge. There is not transparency in such issues to the market participant. This is where Sebi can step in,” said Deven Choksey, managing director, KR Choksey Securities.
“Having said that, India is in a unique position as it has two big exchanges that operate simultaneously. If the trading comes to a halt on one exchange due to a technical glitch, investors can still trade on the other exchange,” he adds.
Worldwide, such instances are not new to the trading system. There have been several instances of trading being stopped due to technical errors. In November 2010, trading at the Bombay Stock Exchange (BSE) ahs to be suspended for two-and-a-half hours due to a technical glitch. READ ABOUT IT HERE
In 2011, within minutes after opening for trade, the London Stock Exchange (LSE) was shut for nearly four hours due to technical problems, which LSE called as “market data issue”. READ ABOUT IT HERE
"This is the biggest outage we have seen at the NSE due to a technical glitch. We need to assess where the problem lies. There are a lot of moving parts - the software, hardware, network and the operating systems, and the problem coukd be anywhere. The NSE also has a huge disaster management and recovery system, which also seems to have failed. One needs to understand why such problems occur, but the back-up systems hould have worked," feels Deena Mehta, managing director at Asit C Mehta Investment Intermediates.
Benchmark indices opened higher, with both Sensex and NIfty hitting their all-time high at open tracking positive cues to Asian stocks.
Sensex rose as much as 242 points to hit the record high of 31,602, surpassing its previous milestone of 31,522 hit on June 22 while Nifty gained as much as 100 points to hit 9756, surpassing the last high of 9,709 hit on June 6.