Introduction of Investor Risk Reduction Access (IRRA) platform in case of disruption of trading services provided by the Trading Member (TM)
Summary
SEBI mandates the introduction of an Investor Risk Reduction Access (IRRA) platform to allow investors to square off positions during Trading Member disruptions. Stock exchanges are required to develop this joint contingency service and enable it either upon request or suo moto based on monitored parameters. The circular outlines specific access protocols, permitted actions, reverse migration frameworks, and compliance deadlines for exchanges and clearing corporations.
Text
In recent times, with increasing dependence on technology in securities market, there is a rise in instances of glitches in trading members’ systems, some of which lead to disruption of trading services and investor complaints.
it has been decided that a contingency service shall be provided by the stock exchanges in the event of such disruption.
A joint platform to provide Investor Risk Reduction Access (IRRA) service shall be developed by the exchanges to provide the investors an opportunity to square off/close the open positions and/or cancel pending orders in case of disruption of trading services provided by the Trading Member.
The IRRA service shall support multiple segments across multiple exchanges.
TMs, upon facing technical glitches which lead to disruption of trading services, can request for enablement of the IRRA service as per the procedures specified by the stock exchanges from time to time and IRRA shall be enabled on receipt of such requests.
stock exchanges shall also monitor the parameters like connectivity, order flow, social media posts etc. and suo moto initiate the enablement of the service, if needed, irrespective of any such request by the TM.
This service shall be enabled by the exchanges, suo moto, only in case of disruption of trading services of TM across all the exchanges, where the TM is member.
Once the service is enabled, all the investors of the TM shall be informed by the exchange of the availability of the service through email/SMS and a public notice on exchanges’ website.
Investors can login to the service using either the Unique Client Code (UCC) or the PAN number and they shall be authorized by a One Time Password (OTP) to be sent to their registered mobile numbers and email ids.
Once successfully authorized, the investors can- square off/close the open positions across segments and exchange/s and/or cancel the orders across segments which are pending at the exchange/s.
The IRRA service shall not permit any action that increases the risk of the investor.
IRRA service shall also provide the TM with access to an Admin Terminal, through which the TM can monitor the actions of investors and also carry out the actions as mentioned at clause 3.8 above, on instructions of investors.
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Source: SecMarx — Introduction of Investor Risk Reduction Access (IRRA) platform in case of disruption of trading services provided by the Trading Member (TM). Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.