Sebi absolves 3 ex-NSE officials, software architect of charges in co-location case
In the high profile NSE co-location case, regulator Sebi on Thursday exonerated three former top officials of the exchange and a software architect associated with a brokerage firm, but asked the bourse to probe the role of two others.
Sebi has been conducting an examination with respect to co-location facility provided by the National Stock Exchange of India Ltd (NSE), including issues with respect to preferential access given by NSE to certain trading members for Tick-by-Tick data feed.
This service apparently allowed the first one to connect to the lowest load server getting advantage in terms of receiving the data faster than others, while few brokers were given preferential access to backup servers of NSE TBT system.
Sebi probe found that the NSE TBT architecture was prone to market abuse thereby compromising market fairness and integrity, as it provided quicker order dissemination to those who managed to login early.
If one entity is ahead of the other while logging ..