Direct Market Access (DMA)
The Securities & Exchange Board of India (SEBI) has approved providing Direct Market Access (DMA) facility and has issued circular no.MRD/DoP/SE/Cir-7/2008 dated April 03, 2008
Direct Market Access (DMA) facility through Computer to Computer Link (CTCL) allows members to provide direct trading terminals only to Institutional clients through various connectivity modes. Direct Market Access (DMA) is used to describe clients / investor accessing the market directly using CTCL software of a trading member and routing the orders through the trading member’s infrastructure.
Members seeking permission for offering Direct Market Access (DMA) are required to ensure compliance with the minimum conditions specified in the SEBI circular.
Procedure to apply for Direct Market Access (DMA)
- Submission of documents by the member as per the master circular download no NSE/MSD/61825 and NSE/MSD/62692 dated April 30,2024 and June 28, 2024 respectively and updated from time to time.
- Registration to the member by NSE.
DMA facility through Investment Manager
The Securities & Exchange Board of India (SEBI) have provided clarification regarding introduction of facility for Direct Market Access (DMA) facility and has issued circular no. MRD/DoP/SE/Cir-3/2009 dated February 20, 2009.
Members seeking permission for offering Direct Market Access (DMA) are required to ensure compliance with the minimum conditions specified in the SEBI circular.
Investment Manager is registered as a market intermediary or regulated under the laws of relevant jurisdiction.
Institutional investors may use DMA facility through investment managers after due authorization and upon furnishing to the broker/exchange suitable agreements/ undertakings between the institution and investment manager stating, inter alia, that the institutional investor shall be responsible for all actions undertaken by its authorized investment manager. Such investment managers may execute necessary documents on behalf of the institutional investor.
Members applying for seeking permission for availing Direct Market Access facility to clients through Investment Manager refer to the master circular NSE/MSD/61825 and NSE/MSD/62692 dated April 30,2024 and June 28, 2024 respectively and updated from time to time.
Computer to Computer Link (CTCL) – Trade
Computer to Computer Link (CTCL) is a specification provided by the exchange using which members can expand their trading facility. This consists of a set of data structures that allow member to develop his own software to connect and transact with the exchange. CTCL software is developed using Application Programming Interface (API) of the Exchange.
The CTCL setup
The CTCL setup is managed entirely by the member without depending on the exchange. This would include procurement of application software, hardware, setting up a network, etc. The Exchange shall provide required technical details of the connectivity of the CTCL server to the MSE trading server and guidance. Exchange provides Non FIX API / FIX API for developing trading solutions.
Members are required
Members are required to comply with Master Circular Computer to Computer Link (CTCL) dated December 31, 2012 and Circular No: MCX-SX/CTCL/1477/2013 dated September 30, 2013 for respective facility.
NSE Trading Technology – Introduction
NSE Trading Technology
NSE has a pan-India high-speed network which supports large number of trading terminals spread across the country ( 231,933 terminals as of September 30, 2024).
National Exchange for Automated Trading (NEAT)
NEAT is a screen-based trading system. NSE also offers “NEAT Plus” package that provides members trading in multiple markets on the exchange with a unified trading interface. NSE’s scalability allows it to add additional hardware “on-demand” to support higher trading volumes and hence maintain a high uptime record and low-latency level for trade orders from terminals. NSE conducts periodic testing and capacity enhancements as the number of NEAT users and trading loads increase. Trading data on NEAT is released almost instantaneously to all trading members on NEAT.
Non-NEAT Front End Platform.
Exchange provides trading front end ‘NEAT’ to members for trading. However, if the member wants to customize the trading front-end according to his requirements, NSE offers a facility to its members by which members can use their own trading front-end software in order to trade on the NSE trading system. This facility is referred as NON-NEAT front-end and this facility is available through Computer-to-Computer link, Internet-based trading, direct market access, algorithmic trading, security trading through wireless technology and smart order routing. For more details you may refer to the Exchange circular no. 61825 dated April 30, 2024 and updated from time to time.
DMA, Algorithmic trading and Co-location facility
DMA facility may be used by the client or an investment manager of the client. DMA facility is being permitted to institutional clients as specified in SEBI circular. For more details kindly refer to the Exchange circular no. 61825 dated April 30, 2024 and updated from time to time.
For institutional clients and other sophisticated traders, NSE provides support for algorithmic trading through our co-location facilities, consisting of rented rack space for servers inside the exchange premises.
Exchange is facilitating its members to co-locate their NNF infrastructure at NSE premises. For more details kindly refer Exchange circular no.61829 dated April 30, 2024 and updated from time to time. Our IT service management system provides co-location hosting services for high-frequency trading and conforms to the IT Service Management System Standard ISO/IEC 20000-1:2018.
Other Platforms
EMERGE and EMERGE-ITP. Two platforms for the listing and trading of SME stocks.
MFSS and NMF II. MFSS is the mutual fund order collection system and NMF-II is a web-based mutual fund trading platform.
Recovery Time Objective (RTO) and Recovery Point Objective (RPO) details
| Type/Segment | Recovery Time Objective (RTO) | Recovery Point Objective (RPO) |
|---|---|---|
| Switch over of trading systems of any segment(s)(CM, FO & CD) | Below 45 minutes* | Less than 15 Minutes |
*from the time of declaration of ‘Disaster’, in line with SEBI Guidelines for Business Continuity Plan (BCP) and Disaster Recovery (DR) of Market Infrastructure Institutions (MIIs) dated March 22, 2021
Trading Protocols
Exchange provides trading front-ends “NEAT” / “NEAT+”. However, if the member desires to customize the trading front-end according to their requirements, members can do so and can develop a Non-NEAT front-end. Alternately, members can also procure Non-NEAT Front-end software solutions from various Vendors / Application Service Providers (ASP) empanelled with the Exchange.
For developing Non-NEAT front-end applications, members/vendors have to refer to Exchange provided documents. These documents describe the protocol to be used for Non-NEAT Front-end (NNF) applications to communicate with the Exchange’s Trading System and thus serve as a development guide for the NNF developers.
Methods to connect to the Exchange Trading Platform
Using Exchange provided NEAT Adapter application:
Exchange trading system is a 3-tier system with NEAT Adapter (NA) acting as a middle-ware between Front-End and Host End. The NA system consists of a software component running on server class hardware platform which allows access and connectivity to the Exchange trading systems. Exchange provided trading front ends – NEAT / NEATPlus software can connect to NEAT Adapter system, which in turn will communicate with the Exchange trading system, thereby facilitating trading.
Direct Connection using Trimmed Protocol:
As the name suggests, members can connect directly to Exchange without any middle-ware application provided by the Exchange. Member systems must initiate a TCP socket connection to the address given by the exchange. Members can refer to the NNF Trimmed Protocol documents for details regarding connection feature.
The Trimmed Protocol document is the protocol document of the Exchange which describes the general guidelines and message structures / flow required to be implemented for communication with the Exchange trading systems. The protocol has Structures for Order Entry Request, Order Modification /Cancelation Request and Response, Trade Modification, Trade Confirmation, Market data broadcast etc.
Kindly refer the below table for usage of the relevant protocol document:
| Mode of Connection | Protocol | Can be used |
|---|---|---|
| NEAT Adapter | – | “NEAT” / “NEAT Plus” |
| Direct Connection | Trimmed | Only for Non Neat Frontend applications |
Protocols documents for CM, FO, CD and COM segment
| Protocol Documents | Capital Market Segment | Futures and Options Segment | Currency Derivatives Segment | Commodities Derivatives Segment |
|---|---|---|---|---|
| Trimmed NNF | Version 5.8 | Version 9.41 | Version 5.9 | Version 3.0 |
| Version 5.7 | Version 9.40 | Version 5.8 | Version 2.9 | |
| Version 5.6 | Version 9.39 | Version 5.7 | Version 2.8 |
Exchange Dropcopy Facility
Members can subscribe to the Dropcopy facility provided by the Exchange. Members developing the functionality need to refer the below mentioned API documents for connecting and receiving the drop copy from the Exchange.
Kindly refer the below table for usage of the relevant protocol document:
| Protocol Documents | Capital Market Segment | Futures and Options Segment | Currency Derivatives Segment | Commodities Derivatives Segment |
|---|---|---|---|---|
| Drop Copy – Normal protocol | Version 2.1 | Version 1.8 | Version 1.7 | Version 1.5 |
| Version 2.0 | Version 1.7 | Version 1.6 | Version 1.4 | |
| Version 1.6 | Version 1.6 | Version 1.5 | Version 1.3 |
Tick by Tick Data via multicast (MTBT)
Exchange provides Tick by Tick Data via multicast (MTBT). Members who wish to develop applications to use MTBT are required to refer the below documents.
| Protocol Documents | Capital Market Segment | Futures and Options Segment | Currency Derivatives Segment | Commodities Derivatives Segment |
|---|---|---|---|---|
| Multicast Tick By Tick | Version 6.6 | Version 6.6 | Version 6.6 | Version 6.6 |
| Version 6.5 | Version 6.5 | Version 6.5 | Version 6.5 | |
| Version 6.4 | Version 6.4 | Version 6.4 | Version 6.4 |
Protocol documents for NOTIS Application
Exchange provides API Documentation for Online Trade Inquiry Service. Through NOTIS Trade Inquiry API members can inquire for trade & actions (any modifications performed on trade)
| Protocol Documents | Capital Market Segment | Futures and Options Segment | Currency Derivatives Segment | Securities Lending And Borrowing Markets | Commodity Derivatives Segment |
|---|---|---|---|---|---|
| WEB Protocol | Version 2.1 | Version 2.0 | Version 1.5 | Version 1.1 | Version 1.0 |
| Version 2.0 | Version 1.9 | Version 1.4 | Version 1.0 | ||
| Version 1.9 | Version 1.8 | Version 1.3 |
Protocol documents for SLBM
The segments are supported through TAP
| Protocol Documents | Securities Lending and Borrowing Markets |
|---|---|
| Normal NNF | Version 2.7 |
| Version 2.6 | |
| Version 2.5 |
Protocol documents for WEB based interfaces
| Protocol Documents | Sponsor Bank-IPO | IPO – ASBA | e OFS | MFSS | CBRICS | RFQ |
|---|---|---|---|---|---|---|
| WEB NNF | Version 0.15.0 | Version 1.18 | Version 1.3.1 | Version 1.4 | Version 1.13 | Version 1.1.6 |
Protocol documents for Extranet Facility
| Protocol Documents | Production Environment | UAT Environment |
|---|---|---|
| Extranet Protocol | API Version 2.0 | API Version 2.0 |
| API Version 1.0 |
Quastion and Answers
Which software is used by NSE?
NEAT
NEAT is a screen-based trading system. NSE also offers “NEAT Plus” package that provides members trading in multiple markets on the exchange with a unified trading interface.
What is CTCL in NSE?
CTCL stands for Computer to Computer Link, which is a facility offered by the National Stock Exchange (NSE) of India that allows trading members to use their own software to trade on the NSE trading system.
CTCL provides a set of data structures that allow members to develop their own software to connect and transact with the exchange. Members can use software customized to meet their specific needs, such as for risk management tools, online trade analysis, and back-office operations integration.