What's New

Information Technology         

NSE Clearing successfully delivered many path breaking initiatives across Clearing, Settlement, Risk Management and Collateral functions

• Technology was leveraged effectively to deliver these initiatives by technology architecture revamp, business process re-engineering, technology modernization and process optimizations.
• To achieve the fastest Turn Around Time and error free executions during daily operations, all the processes were automated.
• Automation included data validation as well as process / data sanctity checks along with exception handling to ensure seamless clearing and settlement activities within the shortened settlement cycle         
              
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Clearing & Settlement     

Direct payout of securities to client demat accounts

• This regulatory initiative was rolled out to enhance operational efficiency and reduce risks associated with the handling of clients' securities at member end.
• The key highlights of the implementation are as follows:
  1. Mandatory Direct Payout: It was mandated that securities for payout must be credited directly to the client's demat account, replacing the previous pooled method used by members.
  2. Mechanism for Unpaid Securities: Clearing Corporations (CCs) implemented mechanisms for Trading Members (TMs) to identify unpaid securities and funded stocks under margin trading facilities.
  3. Handling Internal Shortages: In cases of internal shortages among clients, NCL platforms were enhanced for Trading Members and Clearing Members to handle these through auction processes.
• This necessitated critical technical architecture and design modifications in clearing and settlement platforms.
• It also required performance enhancements due to the increased volume handling expectation in the critical securities payout and auction processing areas.         
  
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Modernization of Clearing, Settlement, Collateral and Offline Risk Management platforms

• NSE Clearing has initiated a program to modernize its existing technology platforms to make them future ready.
• Discovery phase was initiated as a first phase of this modernization journey with focus on finalizing the next generation solution architecture, technology frameworks and technology stack.
• The same was successfully completed in October 2024.
• Additionally, it covered the illustrative business use cases with mapping of new technologies and frameworks implementation.
• After the successful completion of the discovery phase, the modernization program delivery phase was initiated.           
  
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API based mechanism for Early Pay in interface between NSE Clearing and Depositories

• As a technology modernization initiative, API based early pay-in interface was implemented between NSE Clearing and depositories.
• This replaced the earlier file based early pay in mechanism with the depositories.
• It ensured encrypted Early Pay in data transfer on a real time basis resulting in operational efficiencies.
• The same is being rolled out in production environment in close coordination with depositories.      
  
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T+0 settlement CP confirmation CP Trade facility for Securities Under T+0

• There was no facility available for CP trade confirmation by custodians in CM segment for securities under T+0 settlement.
• As a customer service initiative, same was rolled out during the year.
• Clearing & Settlement platforms associated with T+0 settlement, were rearchitected to introduce this functionality. 
• Downstream processes in both clearing and settlement were also suitably re-designed to manage the same.
• Production rolls out was successfully carried out in Sept’2024  
  
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Business Process Optimization for Cash Market & Futures & Options daily processing.

• In a continuous endeavor to optimize business processes, strategic initiatives were undertaken in critical cash market and futures & options segments.
• Total 14 business process optimization initiatives were successfully implemented during the year involving solution architecture/design changes.  
  
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Risk Management & Collateral

API based mechanism for Pledge/Repledge interface between NSE Clearing and Depositories

• As a technology modernization initiative, API based Pledge/Repledge interface was implemented between NSE Clearing and depositories.
• This replaced the earlier file-based pledge / Repledge mechanism with the depositories.
• It ensured encrypted pledge / Repledge data transfer on a real time basis resulting in operational efficiencies.
• The same is being rolled out in production environment in close coordination with depositories.  
  
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Business Process Optimization for Collateral processing

• In a continuous endeavor to optimize business processes, strategic initiatives were undertaken in the Collateral Processing.
• Collateral Allocation Process optimization initiatives were successfully implemented during the year.
• Auto heal implemented across various processes, so that application heals itself in case of any communication failure.  
  
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Multi-Mother implementation in Risk Management

• The existing derivative risk management system had reached its capacity limits due to increased volumes. Therefore, it was necessary to redesign the system to handle current and future volume increases while maintaining high throughput and low latency.
• To achieve this, horizontally scalable architecture has been implemented, enabling load distribution across multiple engine instances.
• The production roll-out was planned in two phases. In the initial phase, the online risk engines were upgraded to the Multi-Mother Version to enable horizontal scaling by distributing the load across multiple engine instances. The primary goal of this phase was to ensure that the latest version is deployed and operational before we proceed with scaling up the environment.
• Multi-Mother Capability in the Online Engine was successfully completed across all production environments in January 2025.
• The subsequent phase focused on scaling up the setup to two Mothers by incorporating an additional instance and the necessary configurations. This would ensure effective load distribution across the available engines by allocating Clearing Members based on trade volumes. The goal being to enhance system efficiency and manage the increased load seamlessly.
• The same is being rolled out in the production environment in close coordination with all stakeholders.  
  
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Business Process Optimization & Performance Improvements in Risk & C2N

• In a continuous endeavor to optimize business processes, strategic and performance improvements initiatives were undertaken in critical cash market and futures & options segments. Some of the key initiatives include,
  1. NCMS FO segment CP trade approvals, Inter CC communication, Trade Capturing & handling of CP trade actions
  2. Query optimizations to improve trade downloads in Cash & FO Segments
  3. Optimized Margin Feed aimed at enhancing intraday CM and TM Updates in the Risk and NMASS interface.
  4. Ongoing rollout of Trades & Actions downloads using improved API Ver. 2.0 in FO segment
  5. Ongoing phase wise migration of Collateral Interfaces from CIM to NMASS
  6. Automation of Inter-CC member shifting processes in Risk Management
• This necessitated critical technical architecture and design modifications to achieve performance enhancements essential to manage the increased volume handling expectation in the critical member facing interfaces.  
  
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