New Delhi, July 9: The Ministry of Finance will probe the allegations made by a whistleblower in which it was stated that there have been flaws in the tick by tick server of the NSE which is giving few traders an advantage over the rest.
It was alleged by a whisteblower that the tick by tick server or the TBT had certain flaws and those logging in sooner had the benefit of faster information.
It was also pointed out that as a result of this advance information, some traders were getting information faster than the rest all through the day and this had put them in an advantageous position. A ministry official informed OneIndia that the probe would be conducted along with the SEBI and the Reserve Bank of India too.
Plugging the flaws:
The probe would first look into the detailed allegations that have been made about the TBT server. The intention is to ensure that technology does not favour one person over the other, the official said. It is important that safeguards are in place. If there is a flaw detected then the first priority would be to rectify the same, the official further noted.
The Finance Ministry would look into this matter and would be assisted by both the RBI and the SEBI. The probe would also look into various other aspects which would include finding out the traders who were at an advantage. The probe would be a full fledged one and the primary agenda would be to ensure that no broker or trader gets a benefit.
The allegations about the TBT:
It was pointed out that the TBT which relays information about the market was beneficial to those who had logged in earlier. Normally these servers are meant to relay information at the same time. However what was pointed out was that if a person logs into a server earlier, he is relayed with information faster than those who have logged in later.
Further, it has also been alleged that if there is a smaller group of people logged on to a server then they get the information faster. For instance a server which has 20 persons logged on to it would get the information faster on a server that has 30 persons. Pointing out that this was a flaw and was being used to the advantage of some, an indepth inquiry into the matter had been sought.