The International Financial Services Centres Authority (IFSCA) on June 23, 2023, issued a circular regarding the Co-location facility offered by the Stock Exchanges.
The following has been stated:
• The Stock Exchanges providing co-location services shall, within the limits of the space, power, cooling and similar facilities available ensure that such services are provided in a fair, transparent and equitable manner with respect to the following:
o data centres that are owned and managed by the Stock Exchange
o data centres that are owned by the Stock Exchange and which are managed by a third party selected by the Stock Exchange
o data centres that are owned and managed by a third party with which the Stock Exchange has an outsourcing/contractual arrangement
• The Stock Exchange shall permit eligible market participants to receive data feeds from other recognised Stock Exchanges at the co-location facilities and allow routing of orders to other recognised Stock Exchanges in IFSC or overseas, from the co-location facilities.
• The Stock Exchanges shall publish the following information on their co-location services on their websites:
o information about services pertaining to space, power, cooling, access to data, market connectivity, technology, technical support, message types, telecommunications and related products and services
o the fee structure for each service
o the terms and conditions for accessing the service
o the different types of latency of access available
o the procedure to allocate co-location space
o the requirements on third-party providers of co-location services, wherever applicable
• Co-location services provided by a third party or outsourced from a third party shall be deemed to be provided by the Stock Exchange. The Stock Exchange shall ensure complete control and jurisdiction over the matters related to its co-location facility. Further, the Stock Exchange will remain responsible and accountable for all actions of such outsourced entities with respect to co-location services.
[Circular No. IFSCA/CMD-DMIIT/EXCHTRD/2023-24/002]
