Co-location / proximity hosting facility offered by stock exchanges
Summary
This circular mandates that stock exchanges provide co-location and proximity hosting facilities in a fair, transparent, and equitable manner to all participants. It requires exchanges to ensure similar latency for all users, sufficient space, and timely decision-making on requests while maintaining system security. Stock exchanges must implement these guidelines within three months and report their implementation status to SEBI.
Text
In order to ensure fair and equitable access to the co-location facility, stock exchanges shall:
provide co-location / proximity hosting in a fair, transparent and equitable manner.
ensure that all participants who avail co-location / proximity hosting facility have fair and equal access to facilities and data feeds provided by the stock exchange.
ensure that all stock brokers and data vendors using co-location / proximity hosting experience similar latency with respect to exchange provided infrastructure.
ensure that the size of the co-located / proximity hosting space is sufficient to accommodate all the stock brokers and data vendors who are desirous of availing the facility.
provide the flexibility to avail rack space in the co-location / proximity hosting so as to meet the needs of all stock brokers desirous of availing such facility.
expeditiously decide on the request of the desirous stock brokers / data vendors for availing co-location / proximity hosting and communicate the decision within fifteen working days from the receipt of the request from the stock brokers / data vendors. In case of a rejection, stock exchanges shall also provide reasons in writing to the stock brokers / data vendors.
facilitate stock brokers to receive data feeds from other recognised stock exchanges at the co-location facilities and allow routing of orders to other recognised stock exchanges from the co-location facilities.
make available on their websites description of the co-location / proximity hosting, including requirements to be fulfilled by stock brokers / data vendors who avail the facility, details on fees / charges associated with the facility, etc.
publish on their websites suitable quarterly reports on latencies observed at the exchange.
be able to identify orders emanating from the co-located servers of stock brokers and the resultant trades. Suitable statistics relating to such orders and trades shall be disseminated by the stock exchanges
In order to ensure that the facility of co-location / proximity hosting does not compromise integrity and security of the data and trading systems, stock exchanges shall:
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Source: SecMarx — Co-location / proximity hosting facility offered by stock exchanges. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.