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NSE alleges bug in FT's trading software
By siliconindia
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Wednesday, 24 December 2008, 23:11 IST |
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Mumbai: Financial Technologies (FT), an exchange-empanelled software vendor who provides software to access the cash and derivatives segment on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), is now under fire as NSE reveals that its trading members who use FT's front-end software over the past two-and-half years, have been complaining about an alleged presence of 'bugs' in the software, which led to invalid order cancellation requests.
Due to this, FT was kept under 'watch list' by NSE in October this year. 80 percent of the country's brokers are using FT's front-end trading software, CTCL.
CTCL also provides access to commodity features segment on MCX and NCDEX and currency futures platform on MCX Stock Exchange (MCX-SX).
As per an Economic Times Report, NSE was responding to a law suit filed by FT in the High Court on December 15. The company had described the NSE's action as 'malafide intentions of stifling competition' with a view to cause loss to the FT by benefiting its competitors.
FT had earlier received approval from SEBI to set up MCX-SX to offer currency derivatives trading. FT says that the problem with NSE started after the SEBI's approval which put them in direct competition with NSE as NSE's currency platform was launched in the same month.
The company further mentioned that it has been suffering a loss of 
60 lakh every day since October. Demos to NSE's trading members for installing add-ons to the software to enable direct market access and internet-based trading for equities have been put on hold, FT said. FT believes this is against Sebi guidelines, according to which, the decision on such products must be taken within 30 calendar days.
FT pointed out that over the past ten years of its operations, they received only two letters from NSE on problems faced by its members, while, NSE's court paper has listed 10 complaints since 2006.
60 lakh every day since October. Demos to NSE's trading members for installing add-ons to the software to enable direct market access and internet-based trading for equities have been put on hold, FT said. FT believes this is against Sebi guidelines, according to which, the decision on such products must be taken within 30 calendar days.
FT pointed out that over the past ten years of its operations, they received only two letters from NSE on problems faced by its members, while, NSE's court paper has listed 10 complaints since 2006.