NSE to launch 2-factor validation in negotiated trade platform

To enhance security measures for investors, National Stock exchange (NSE) will implement two-factor authentication for users of negotiated trade platform from June 6.

Last year, the exchange introduced a web-based negotiated trade platform for reporting all the deals in the debt segment.

A negotiated trade platform is a type of secondary market exchange in which the price of each security is bargained out between buyers and sellers.

"In order to enhance the security measures, the exchange shall be implementing Two Factor Authentication (2FA) for user log in on negotiated trade reporting platform of debt segment," NSE said in a circular.

Two-factor authentication is a security process in which the user provides two means of identification from separate categories of credentials.

The new facility will be implemented with effect from June 6, 2016. It will be optional till June 10 but will become mandatory with effect from June 13.

A negotiated trade platform allows traders to report both buying and selling of securities in single-order entry. Such trade entered by a trader can be confirmed by the counter-party member if all parameters are accurate.

BSE has implemented this facility for users of its web-based mutual fund platform from May 30.