IRRA Platform by NSE to go live on 3rd October: All you need to know
The National Stock Exchange (NSE) has introduced an Investor Risk Reduction Access (IRRA) platform, which will go live on 3rd October for trading members. It will help them with their trades in case there is an outage or technical glitches in the primary platform that traders use.
NSE has introduced the IRRA platform to Trading Members (TMs), which will support internet-based trading (IBT) and Security Trading through Wireless Technology (STWT). Trading Members are typically stockbrokers or brokerage firms that have obtained membership from the NSE. TMs are authorized to directly trade on the exchange. They execute buy and sell orders on behalf of their clients and also engage in proprietary trading for their own accounts.
As per the circular released, NSE has said that in case both the primary and disaster recovery sites are affected and regular business cannot be conducted, affecting the trading members, then they can exit or square off their existing position using a common platform under the guidelines of IRRA, jointly provided by all exchanges.
In the circular, NSE added that IRRA will also provide the trading members access to an admin terminal, allowing them to monitor their investors' actions, and the latter will help them to place square-off orders or cancel pending orders on behalf of its investors or for proprietary accounts.
The NSE has informed the trading members to keep their clients' contact details updated in the UCC (unique client code) system of the exchanges as this information will be used for investor login authorization on the platform.
It is essential to mention that the system will only be available to individual investors and will not cater to algo trading and institutional clients. Another crucial point is that it will only facilitate squaring off positions and cancel pending orders. Traders cannot open fresh positions using the IRRA platform.
It will be a big boost for trading members and investors as their safety and efficiency will improve with the IRRA platform. Also, this is a significant step by NSE and marks a milestone in risk management and position handling within the stock market.