BSE Network Outage And Consequent Market Closure on July 3
Every day, more than 8,000 connections log in. Each primary connection can potentially have several tens of users to several thousand users depending on the member convenience and their own network configurations. At 9.42 AM on July 3,2014, the number of primary connections had come down to less than 2000 and hence market needed to be closed as per current regulations applicable to closure of markets.
BSE and its network technology (equipment and service) providers worked in coordination to identify, isolate and resolve the problem. Experts from US and other support locations also worked throughout the period to resolve the problem.
The problem was resolved by 12.15 PM on 3 July before the market could be started from Disaster Recovery Site located at Dhirubhai Ambani Knowledge City (DAKC). As the problem was resolved, after initial testing, it was decided to start the market from current production site located at BSE building. Subsequently, the currency market started at 12.34 PM, equity derivatives market started at 12.36 PM and equity market started at 12.45 pm. Equity market had pre-open period from 12.37 pm to 12.45 PM.
The market closure duration therefore from 9.42 AM till 12.45 was approximately 3 hours and 3 minutes.
As per the pre-defined process, BSE, HCL Comnet and CiSCO will prepare a root cause analysis, present to BSE’s Technology Advisory Committee consisting of IT heads of various companies, market experts and academics. Subsequently, the same will be presented to BSE’s Board of Directors, as well as the Regulator SEBI. The Root Cause Analysis report will contain the details of the incident, the reasons for the same, how it was repaired, steps suggested and being undertaken with timelines to eliminate recurrence of such a specific event or similar events.
BSE management is acutely aware of the need to operate the markets on continuous basis with minimum market disruption. It has taken all the steps required to achieve this objective and will continue to take all actions necessary to ensure that the markets function without any disruption in future.
We place on record with gratitude for the phone calls, text messages and emails received from various market participants including media personnel for expressing their concern and support during this difficult time. We also profusely thank all the trading members and all investors who have shown patience with this market closure.