SEBI Introduces New Framework For Commodity Derivatives Segment

Framework Details  
Under the new guidelines, commodity exchanges and clearing corporations must ensure their IT infrastructure can handle double the projected peak trading load. This replaces the earlier requirement of maintaining four times the peak load, aligning the commodity derivatives segment with SEBI’s broader Market Infrastructure Institutions (MII) framework.  

Objective Of The Move  
The framework aims to strengthen system resilience, ensure consistent response times during high-volume trading, and improve oversight of technology infrastructure. Real-time performance monitoring will allow exchanges to detect stress points early and maintain seamless trading operations.  

Industry Impact  
By mandating robust IT capacity and monitoring, SEBI seeks to safeguard market integrity and investor confidence. The move is expected to reduce risks of system outages, enhance transparency, and support the growing scale of commodity derivatives trading in India.  

Key Highlights  

• SEBI revises IT capacity norms for commodity derivatives  
• Critical systems must maintain 2x projected peak load  
• Real-time monitoring framework introduced for exchanges  
• Move enhances resilience and investor confidence  
• Aligns commodity derivatives with broader MII framework  

Conclusion  
SEBI’s new framework marks a significant step in strengthening India’s commodity derivatives market infrastructure. By balancing efficiency with resilience, the regulator ensures that exchanges remain well-prepared for rising trading volumes and technological challenges.  

Sources: SEBI Circular, PTI, Economic Times  [Rediff Money