SEBI's IT System Capacity Regulations: An Inconsistent Past, A Critical Present And A Global Comparison

INTRODUCTION

IT system infrastructure involves the technological systems and architecture which allows electronic trading in financial markets. Its reliability and effectiveness can make a considerable difference in the smooth functioning of trading operations, directly impacting a company's profitability and reputation in the market. In this fast-moving world, even downtime for a few minutes can cause major financial losses. One of the key advantages of maintaining a robust IT system infrastructure is Scalability which means a system's capability can be upgraded and expanded to provide for the increased data volume or workload as exchange grows.¹ As stock exchanges grow, the demand on their IT systems increase significantly . A scalable IT infrastructure assures that exchanges can accommodate increase in market participants, trading volumes, and increased data throughout without affecting its speed or stability.² By designing a system with scalability in mind, it