Sebi Revises IT Norms for Commodity Derivatives

New Delhi, Jun 30 (PTI) Markets regulator Sebi on Monday proposed that all commodity exchanges and clearing corporations (CCs) maintain a minimum installed capacity of two times the projected peak load for their critical IT systems.

The move follows feedback from commodity stock exchanges (SEs) and discussions within Sebi's Technical Advisory Committee, which observed that IT infrastructure in the commodity segment is significantly underutilised.

Currently, commodity exchanges are required to maintain a trading system capacity of at least four times the peak load under the guidelines issued in 2016.

However, there are no specific provisions for capacity planning and real-time performance monitoring applicable to clearing corporations in the commodity segment.

In a consultation paper, Sebi said the proposed framework seeks to address this regulatory gap and promote uniformity across the market infrastructure ecosystem.

The draft circular outlines a host of measures that exchanges and clearing corporations must adopt to ensure seamless system performance.

These include a forward-looking capacity planning methodology, quarterly stress testing, and implementation of automated alert systems for real-time performance issues.

The projected peak load is to be estimated based on the sustained peak load trend of the past 180 days and projected for the upcoming 60 days, though shorter durations can be adopted with board approval, as per the consultation paper.

The regulator said data submitted by commodity exchanges showed significant underutilisation of installed IT capacity, prompting the proposal to recalibrate the capacity requirement while ensuring operational resilience.

Sebi also proposes that immediate action be taken if actual capacity utilisation of any IT component of stock exchanges and clearing corporations exceeds 75 per cent of installed capacity.

All infrastructure components -- ranging from hardware and software to third-party vendor systems -- are to be included to meet the capacity and real-time performance requirements to support the business activities of the SEs and CCs.

Additionally, entities must maintain an asset register and ensure appropriate thresholds for component utilisation are approved by their Standing Committee on Technology (SCOT) and Governing Board.

The regulator has invited public comments on the draft framework by July 20. Further, Sebi said exchanges and CCs will be required to submit board-approved implementation policies within three months of the circular's final issuance.