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Sunday, November 17, 2013

BSE to set up its back-up centre in Hyd soon

In times of crisis, Asia’s oldest exchange BSE Ltd (formerly Bombay Stock Exchange) will soon be banking on Hyderabad, which will house the stock exchange’s second back-up site in the country. The BSE disaster recovery centre, coming up in the financial district at Gachibowli at a cost of over Rs 100 crore, is set to be operational by mid 2014. 
    “We are setting up a disaster recovery site at Gachibowli. The new building has been under construction for the last two years and we expect to launch it in the first or second quarter of 2014. The centre will be a complete replica of the entire trading system at BSE in Mumbai. In fact, on many days, BSE will be operated out of the Hyderabad centre as per the Securities and Exchange Board of India (Sebi) regulations,” BSE Ltd managing director and chief executive officer Ashishkumar Chauhan said on the sidelines of the ‘Business Orientation Program (BOP) – 2013’ at the Institute of Management Technology, Hyderabad. 
    He said the current backup site of BSE was 50 km away from the main building in Navi Mumbai but as the site falls in a seismic zone, the need was felt to create another backup site in a relatively safer zone. 
    BSE has invested over Rs 100 crore in its second disaster recovery site at Hyderabad and in the initial stages will employ around 30-40 people, he said. “This is part of the cyber security framework of the government, under which all the important economic institutions are building such alternative sites across the country,” the BSE head explained. 
    Chauhan also said that from December this year, BSE will have the fastest response time for traders. “When you place an order on BSE, the response time is 10 milliseconds. We are in the process of changing our software and by the first week of 
December, the response time will come down to 200 microseconds, making it 50 times faster than earlier. This will be the fastest response time for any exchange in the country,” he added. 
    Meanwhile, speaking about BSE’s performance, he said it had clocked a turnover of Rs 570 crore last financial year and was expected to remain in a similar range this year too due to the slowdown in the market. He said bourses currently draws its entire revenues from the equity segment but in the next few years, segments such as derivatives, currency futures, mutual fund distribution via exchange and data sale too would contribute to its bottomline. 
    Speaking about the overall performance of the sensex, the BSE head said, “Over the last three-four years, stock market activities have slowed down. Internationally, the equities volumes are 80% lower than what they were at their peak in 2007, but in derivatives it has remained the same or gone up. We have seen similar trends in India too. However, in the last few days, we have seen the equities market improving. If the bullish trend continues, the performance of equities will improve.”

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