Trading Members of the Exchange are hereby informed that the Exchange has received the approval from SEBI for introducing the Commodity Derivatives Segment. With reference to the same, members are requested to adhere to the revised circular.
This notice is applicable to systems or applications used by trading members for connecting to the Exchange and for the purposes of trading and real-time risk management, including software used for IML (Intermediate Message Layer), IBT (Internet Based Trading), DMA (Direct Market Access), STWT (Securities Trading through Wireless Technologies), SOR (Smart Order Routing) and AT (Algorithmic Trading).
1. Testing of software:
a. Testing in a simulated test environment:
It is mandatory for members to test new software or existing software that has undergone change prior to seeking approval from the Exchange.
Test Market details are available in the below mention link:
https://www.bseindia.com/nta.aspx
b. Mock testing:
i. Testing of new software or existing software that has undergone change in mock testing environment is mandatory.
ii. The exchange shall conduct mock testing session from time to time based on circulars published by the Exchange.
c. User Acceptance Test (UAT):
The trading member shall undertake UAT of the software to satisfy themselves that the newly developed / modified software meets its requirements.
2. Trading members seeking approval for new software or change to the existing approved software shall be required to engage system auditor(s) to examine reports of tests performed in simulated test environment, contingency drill / mock test and UAT and to certify that the tests were satisfactorily undertaken. Trading members shall be required to submit the auditor’s certificates, as per the format specified in Annexure ‘2’, along with the application to the Exchange at the time of seeking approval for the software.
3. Trading members shall ensure that all user-ids used for Algorithmic trading, irrespective of the algorithm having undergone change or not, shall participate in the contingency drill / mock trading session.
4. In case of pre-approval / periodic system audit of IML, IBT, DMA, STWT, SOR and AT trading members shall engage a system auditor, as specified vide SEBI circular dated CIR/MRD/DP/16/2013 dated May 21, 2013, given at Annexure ‘1’. While finalizing the system auditor, trading members shall ensure that the system auditor does not have any conflict of interest with the trading member and that the directors / promoters of the system auditor are not directly or indirectly related to the current directors or promoters of the trading member.
5. Trading members shall submit the application and seek approval from the Exchange for deployment of the software.
6. Penalty on malfunction of software used by trading member: The Exchange shall examine the cases of malfunctioning of software used by trading members and action shall be taken as may be deemed fit by the Exchange.
This notice is applicable with immediate effect and shall supersede the Exchange notice no. 20131001-41 dated October 1, 2013.
For and on behalf of BSE Ltd.,
Ketan Jantre
Sr. General Manager
Trading Operations
Annexure 1: Auditors Qualification
Annexure 2: Audit Certificate
Annexure 3: System Audit Checklist for software
|