BSE turnover plunges by over half on 3-hour trading disruption

Posted By: Staff
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BSE turnover plunges by over half on 3-hour trading disruption
Turnover at the BSE more than halved today after the exchange suffered a halt of three hours due to network outage.

The BSE's derivative segment total turnover tumbled 74 per cent to Rs 13,394.80 crore, while equity segment's turnover tanked 67 per cent to Rs 1,429.99 crore compared to yesterday.

Equity volume today stood at 16.32 crore, a drop over over 50 per cent from 35.24 crore witnessed yesterday. Stock derivatives took a greater knock as volume (share/contracts) slipped by 74 per cent to 3.50 lakh from 13.61 lakh.

"There was a corresponding drop in volume at the BSE today due to a network outage," Destimoney Securities MD and CEO Sudip Bandyopadhyay said.

Earlier in the day, the BSE suffered a glitch in the connectivity system due to a network outage, owing to which trading at the exchange was stopped for about three hours from 9.42 am.

The Sensex halted trading this morning across all its platforms, including shares, currencies and indices due to a network outage.

"Sebi and the Finance Ministry have sought reports from us following the worst technical glitch in our modern history. We will be sending the same by the end of the day today," BSE Managing Director and Chief Executive Ashish Kumar Chauhan told reporters here.

The benchmark Sensex opened the day with an over 83 points gain at 09.15 hrs to hit another record-high of 25,924.25. But by 09.42 hrs, a glitch developed and the trading was halted across all platforms of the exchange, including equities and currencies.

The Sensex finally ended at 25,823.75, down 17.46 points. This is the second time in two months that Asia's oldest stock exchange, set up in 1875, faced a snag.

On the impact on volume due to the 3 hours 3 minutes outage that was triggered by a hardware malfunctioning at the end of BSE vendors Cisco and HCL, Chauhan, without quantifying, said since half of the trading hours had been lost and pre-crisis trades were cancelled, the impact could be well over two-thirds of the daily average volume, which is around 2 million trades.


Read more about: bse, sensex, cisco, hcl
Story first published: Friday, July 4, 2014, 8:41 [IST]
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