NSE An IT Perspective NSE.IT Limited Satish Naralkar July 1, 2003
NSE - The Organization The National Stock Exchange (NSE) Of India Ltd. Leading stock exchange of the country covering 370 cities and towns. Provides fully automated screen based trading system Market segments (current) CM(Equities) F&O (Derivatives) WDM (Whole sale Debt Market) IPO (Initial Public Offer) MF (Mutual Funds) July 1, 2003 2/26
NSE Equity Market Market share (Equities) NSE 64% BSE 34% Others 2% Number of listed securities : 841 Number of users : 8000 July 1, 2003 3/26
NSE Derivatives Market Market share (Derivatives) NSE 99% Number of contracts: 1500 Others 1% Number of users : 2500 July 1, 2003 4/26
Growth in Equities No. of users logged in NSE growth profile In Thousands 12 10 8 6 4 2 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 July 1, 2003 5/26
Apr-00 Sep-00 Feb-01 Jul-01 Dec-01 May-02 Oct-02 Mar-03 25 20 15 10 5 0 July 1, 2003 6/26 Nov-99 Jun-99 Growth in Equities NSE growth profile Capacity Trades In Lacs Nov-94 Apr-95 Sep-95 Feb-96 Jul-96 Dec-96 May-97 Oct-97 Mar-98 Aug-98 Jan-99
BIRD S EYE VIEW OF IT SETUP July 1, 2003 7/26
INFO VENDOR CTCL SETUP CORP. N/W CUSTODIANS CLEARING BANK Setup at Traders location around 3000 VSATs DTU INSAT 3B IDU Regional Clearing House 64 kbps leased line VSAT, 2 Mbps and 64 Kbps WAN links Dial up EICON X.25 Server Interactive Voice Response System Newbridge 2Mbps muxes Condex Modems X.25 switches (Motorola) 7.6 Mtrs Hub Antenna GE Spacenet Hub Wholesale Debt Market Terminal (100) Capital market Terminal (6000) Disaster backup site at Chennai 2 Mbps fiber optic link Helpdesk terminal 2 Mbps leased line 100 Mbps UTP cable Network management system Eicon X.25 Server Trading facilities at NSE Firewall Lotus Notes(HP Server Windows NT) INTERNET 3Com E/NET switch Depository 10 KMs from NSE Backoffice systems (HP 9000 K400) Online Monitoring system Production server Hot stanby server Dev. server History server STRATUS Fault July 1, 2003 Tolerant trading 8/26 systems 1,000 workstations (Comapq/HP/DELL)
IT - PLATFORMS Hardware Stratus Mainframe (Fault Tolerant System) 11 Digital Alpha (Large Unix Servers) 06 HP 9000 (Large Unix Servers) 04 Digital Alpha/Sun (Medium Unix Servers) 15 Compaq/HP/Dell (NT / 2000 Servers) 55 Workstations 1068 July 1, 2003 9/26
IT - PLATFORMS Software O/S VOS/UNIX (Digital/HP/SUN) Windows NT / Windows 2000 Database Oracle, MS SQL, Raima, Appletree Front End Windows NT / 2000 / XP, Developer 2000, CTD, Visual C++ Tools Oracle Case Tool, Designer 2000, SQL Back Track, Veritas Backup / Restore Network Monitoring (VSAT & Terrestrial based Trading Network -TBTN) GroupWare Lotus Notes Comm. Protocols X.25, TCP/IP July 1, 2003 10/26
Elements of IT Setup Network Infrastructure Hardware IT Setup Security System Software Databases Application Software July 1, 2003 11/26
Activities in IT Setup Facility Management Planning IT Setup Capacity Planning EMS Enterprise Management Services Technology Management BCP/DR Back Office Support July 1, 2003 12/26
Planning and Building IT Setup Scoping Sizing Resilience building Compatibility Scalability Manageability Tools July 1, 2003 13/26
Data Center - Manning - Monitor/Check - Backup/Restore - Media Library - House Keeping Facility Management System Administration Network - Management - Operations - Maintenance Facility Management Database Administration Office Automation - Standarisation - Antivirus - PC Backups Call Center - IVR services - Helpdesk - Field Support July 1, 2003 14/26
Capacity Planning Benchmark Exercises Utilization Data / Analysis Performance Bottlenecks Capacity Planning (Re)Sizing Optimizations Upgrades / Enhancements July 1, 2003 15/26
Resilience Planning System/Application S/W Databases Environment, H/W, N/W Premises Disaster July 1, 2003 16/26
Resilience Planning (Contd) System/Application S/W Databases Environment, H/W, N/W Premises Disaster Recovery N+1 Cluster Redundancy Maintain Procedures Version Control Interoperability (H-S-N) Backups Tools On-Line Backups Database Recovery DR Site Replicate Update Drills July 1, 2003 17/26
Backoffice System Budget / Procure / Maintain Centralized Standardize Consolidate Documentation Technical Layout & Diagrams S/W Library & Custodian Back Office Obsolescence Planning Insurance & Audit Monitor Licenses / Expiry Terms / SLA July 1, 2003 18/26
Technology Management Direct Relevance Scanning New Deployment Opportunities Technology Management Knowledge Management Evaluations Trainings Skill Upgrade Deployment July 1, 2003 19/26
IMPACT ON MARKET Complete transformation of the Market mechanism Investors are guaranteed a new level of reliability Reduced transaction cost by factor of 10 Paperless trading - Further reduction in transaction costs to investors in post trade Unique Risk containment measures July 1, 2003 20/26
IMPACT ON MARKET.contd Offering systems in the entire life cycle of the trade (Trading, Clearing and Settlement) Interactive VSAT based trading offers equal opportunity to all members IT fosters higher volumes, putting NSE in top 10 exchanges worldwide IT driven exchange - quick to adapt to changes July 1, 2003 21/26
IT - Key Differentiatior's Largest VSAT network in the country with around 3000 VSATs in 350 locations NSE owned wide area network ensuring secured access for over 7 years now True client-server implementation over WAN using PC based local database Complete production replication at disaster backup site in Chennai Optimum usage of software for multiple products (Debt, Equity, Derivatives, IPO s, Mutual Funds July 1, 2003 22/26
IT - Key Differentiatior's contd Complete automation of each and every exchange activity including helpdesk Use of technology appropriate for business applications (Raima, Gupta) Continued application of newer technologies and media Consistently ensured performance (less than 2 sec. Response) with highest uptime (99.98%) Innovative customer interaction - Helpdesk, IVR, Extranet July 1, 2003 23/26
Management Perspective of IT IT Key for competitive business edge IT strategy is business strategy IT is investment, not cost if appropriately done Focus on using innovative trends Integrated business and IT responsibility for projects Widespread acceptance of technology in all areas of business Total Top Management involvement July 1, 2003 24/26
NSE Experience IT is a key facilitator to modern business, if properly used The application of technology, not the hype is more important (BKC Implementation) Project Management is the key to IT success Business users participation and responsibility is essential to utilize IT benefits Top Management support for IT investment plays a key role for introduction of cutting edge technologies Project Initiatives on cost-benefit analysis July 1, 2003 25/26
THANK YOU July 1, 2003 26/26