India’s Top Stock Exchange Halts Trading After Telecom Disruption

The National Stock Exchange of India Ltd. shut trading in its cash and derivative segments, citing “issues” with telecom links of its two service providers, which it said impacted the system and stopped prices from updating.

“We are working on restoring the systems as soon as possible,” a spokesperson for NSE, the world’s biggest derivaives exchange by number of contracts, said in a statement.

Technical glitches have disrupted trading at several stock exchanges in the Asia Pacific region in recent months. In October, a hardware issue forced an unprecedented all-day halt on the Tokyo Stock Exchange. Australia’s stock exchange opened for less than half an hour on Nov. 16 before a software issue forced it to close for the rest of the session.

About an hour into trading on Wednesday, traders in Mumbai flagged that levels for the cash segment on the NSE’s benchmark Nifty 50 Index as well as the Nifty Bank Index stopped updating. After nearly 90 minutes of that disruption, the exchange notified that it was shutting down all its market segments, including derivative trading.

“Major volume goes through the NSE, so it will have an impact,” said Anita Gandhi, director at Arihant Capital Markets. “Fortunately, traders have access to BSE also, some will be using that as backup,” she said, referring to the other bourse.

BSE continues to have normal trading in all segments today, the exchange said in a statement.

Wednesday’s disruption at NSE revived memories of an episode in July 2017, when the NSE shut both the cash and derivatives segments due to technical issues, with traders unable to execute trades at its venue and prices not updating.

The NSE Nifty 50 Index was last seen up 0.8% at 14,820.45.

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