For Bulls and Bears

DQI Bureau
New Update

National Stock Exchange of India connects various traders across India by

utilizing satellite technology and terrestrial leased line network to enable

transparency in trading.


The Deployment

With the use of X.25 protocol, NSE faced issues like bandwidth constraints,

lack of expansion and scalability options. So, NSE decided to set up a

nationwide network by deploying IP network. This helped NSE to further enhance

the trading experience and provide value added services. Muralidaran N, CEO, NSE

Infotech Services says that the complete project was first of its kind to be

implemented in India. Muralidaran explains that X.25 has also become obsolete

with no further development and support from equipment manufacturers.

Muralidaran opines, "Considering the fact that the trading network is the
backbone of exchange operations, 100% availability and zero downtime were the

clear objectives while opting for this project. The IP network offers a

resilient, open standard, high bandwidth and cost effective solution over the

existing X.25 network infrastructure. The changes at NSE were done seamlessly

without any downtime to the existing business."

The Building Blocks

Muralidaran says that meticulous planning helped a great deal in the successful
implementation of the project. The significance of the project was the careful

migration of each brokers branch setup spread across the country to the new

technology. A dual hub and spoke topology had been implemented with multiple

service providers and at nine points of presence (POP) across India namely:

Chennai (one POP), Mumbai (three POPs), Ahmedabad (one POP), Delhi (two POPs)

and Kolkata (two POPs). All the POPs across the country are connected to NSE

data center located in Mumbai and the BCP site located in Chennai. Members have

the option to subscribe to the nearest POP in their respective location.

The nationwide IP network project was the

first of its kind to be implemented in India

Muralidaran N, CEO, NSE

Infotech Services


The security challenges were  addressed through the use of a multitier

security framework that was initiated at the members end. Owing to the complex

nature and large size of implementation, Muralidaran reasons that NSE decided to

opt for Cisco as a concept partner and HCL as a rollout partner. The project

involved a high degree of synchronization across multiple teamsboth internal

and externalas it was a complete end-to-end change, starting from the member

end software, network connections and the equipment followed by the highly

resilient backbone connections to the primary and disaster recovery sites of NSE.

An application component Trading Access Point (TAP) acts as an entry point of

exchange and has several features for  the benefit of members like automatic

session recovery, rate control and others like FIX (Financial Information

Exchange) interface that are in the pipeline. Currently, the application is

functional on Linux based Fault Tolerant hardware enabling connection of

aggregation points for thousands of trading connections. There is also a custom

built messaging library that ensures guaranteed delivery of messages across

system layers. The low level design is traceable to the high level design, which

in turn is traceable to the requirements document. Additionally, this

traceability was validated during the testing of the implementation.

Shilpa Shanbhag