Bourses launch platform to reduce trading risk – Times of India

MUMBAI: Three stock and two commodities bourses on Monday together launched a new risk mitigation platform that the chief of the securities markets regulator Sebi, Madhabi Puri Buch, described as a technology that set yet another global best practice standard.
At BSE, the Sebi chief inaugurated the Investor Risk Reduction Access (IRRA) platform that could save traders from being hit hard in case of any technical glitch with the broker’s system from where they have put some trading orders.
In case of a technical glitch with any of the brokers in the stocks and commodities market, using the IRRA platform, the affected broker’s clients would be able to quickly cancel their pending orders and cut their losses. Market players said this is most likely a global first where technology is being leveraged to protect investors from losses due to technical problems.
“It is this technology which sets us apart and in numerous international and global fora, people seek India out and say, ‘How do we appreciate, how do we understand how India is setting the global best practice in numerous areas’,” said the Sebi chairperson while inaugurating the IRRA platform.
The IRRA system is like that safety net of the trapeze artist in a circus which lets them show their tricks with confidence but is rarely used. “The hope is that we will never need to use it (IRRA platform),” the Sebi chief added.
Till now, if there was any technical glitch with a broker, the traders who had put in their trades through the affected broker had to wait for the glitch to be resolved. If the system was not up quickly, they incurred huge losses. With the IRRA platform in place, such situations may not occur again and investors would be able to cancel their orders to limit losses.

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