The recently launched straight-through processing (STP) framework seems to have run into inter-operability glitches once again. |
There are other issues such as delay in sending/ receiving large messages too. Sources said these are teething problems which should be solved soon, adding that the Securities and Exchange Board of India (Sebi) has called for a meeting of all service providers on Wednesday to sort out the matter. |
A senior official from one of the service providers said users were facing problems with certain service providers. And data are being entered manually, which should not be the case, he said. |
"The header information should be created by the system and not by the user. The hub and also the receiving service provider are rejecting the information due to incorrect data entry," the official said adding that user training is very important for STP to succeed. |
NSE officials said service providers connected to the STP central hub on a dial up medium and not on a high speed 2 mbps leased line may experience delays in sending/ receiving large messages. They added that some service providers have already connected through high speed 2 mbps leased lines. |
Sebi chairman G N Bajpai had recently inaugurated the STP inter-operability framework. The stock markets regulator directed that all institutional trades executed on the stock exchanges should be mandatorily processed through the STP system with effect from July 1, 2004. |
STP is a process driven mechanism to control all elements of the work flow in a financial transaction that allows electronic capturing and processing of transactions in one pass from the point of origination to settlement. |
The framework was launched in India in November 2002 but was being used by the market participants on a voluntary basis. Several STP service providers have been providing the service to market participants. However, there was no inter-operability between these service providers. NSE has set up the STP central hub to provide inter-operability between the STP service providers. |
The STP service providers connect to the STP central hub for sending and receiving messages between them. The STP central hub facilitates the smooth flow of messages between users of different service providers. With interoperability in place, market participants can avail of the STP services offered by any of the service providers. |
NSE officials had earlier said that market participants connect and operate through specific STP service providers and not to the STP central hub directly. The STP service providers in turn connect to the STP central hub. |
If STP users faced connectivity issues and technical glitches, it may have arisen due to issues specific to a particular service provider with whom they have signed up and may need to be taken up with specific service providers. |