The National Stock Exchange (NSE) on March 07, 2024, issued an update to the circular related to Encryption/Decryption of Interactive Messages for the Currency Derivatives; Commodity Derivatives; Member Service Department; Emerge; Securities Lending & Borrowing Scheme; Futures & Options; Capital Market (Equities) Trade
The following has been stated namely: -
• This has a reference to circular NSE/MSD/60804 dated February 21, 2024, regarding the mandatory rollout plan of Encryption of interactive messages for all segments.
• The Exchange has implemented encrypted interactive messages flow in a phased manner and has conducted multiple mock trading sessions for members to test and deploy in a production environment.
• It has also provided a coexistence phase for both types of message flow for more than 3 months. As mentioned in the aforesaid circular, for Direct Connection through NNF users, the non-encrypted flow of interactive messages is planned to be discontinued from March 16, 2024, and members are expected to log using only through Encrypted message flow thereafter. It has now been decided to allow both encrypted and non-encrypted message traffic further till March 28, 2024.
• It states that the Exchange shall levy a penalty for each segment as below, to members if any of the user ID logins through a non-encrypted channel during the trading day w.e.f March 18, 2024
• It further states that the on-encrypted flow of interactive messages shall be discontinued w.e.f. March 28, 2024 (EOD) and from March 18, 2024, members should be responsible and cautious while login to the Exchange environment and ensure that message traffic is sent only through an encrypted channel, in order to avoid penalties/regulatory actions.
[Circular No. NSE/MSD/61052]
