Imagine a future where stock exchanges are more efficient, secure, and transparent. This is what the markets regulator, Sebi, is aiming for with its plan to constitute a working group to identify the next technological frontier for stock exchanges.
What is the Working Group About?
The working group will focus on how exchange technology should evolve over the next 5-10 years, benchmark global best practices, and develop new methods to strengthen market infrastructure. This means that the group will look at how to apply cutting-edge technologies to enhance market oversight, improve operational efficiency, and strengthen investor protection.
Why is Technological Robustness Important?
Sebi's chairman, Tuhin Kanta Pandey, stressed that technological robustness is critical, noting that every exchange-related glitch is treated very seriously. He emphasized the need for stronger safeguards to address technical flaws, which can occur due to rapid technological changes.
What Happens in Case of Technical Flaws?
In case of technical flaws, exchanges are required to conduct detailed root-cause analyses and submit comprehensive standard operating procedures (SOPs) and corrective measures. Sebi follows a clearly defined standard operating procedure, including imposing strict penalties if the issue crosses certain thresholds.
Sebi's Approach to Technical Glitches
Sebi is looking at technical glitches from a systemic perspective by analyzing root causes across exchanges. By identifying commonalities in these glitches, the regulator aims to understand how to better secure and strengthen market technology.
Remember, this is a perspective, not a prediction. It's essential to do your own research and stay informed about the latest developments in the stock market.