The Need for Vendor Empanelment
For a trusted technological environment, SEBI released a circular in 2000 at the launch of online trading in India regarding empanelment of software vendors by exchanges. This also created an initially monopolist market of software vendors. Financial Technology was the first to apply and their product ODIN became the ubiquitous software for online trading.
To enable the vendors/members to utilize the Program Trading/ CTCL / Internet based trading facility, the exchange provides technical specifications (message formats/protocols etc) for the interface with the Exchange’s trading system. These are provided in the form of a NNF document separately for CM and F&O segments. The NNF documents are now also available to brokers free of cost. This NNF document is used by software vendors to build tools for analysis, risk management and decision support for trading software.
In year 2003 NSE revise their fee for Empanelment & is now for commercial purpose – 22500$ USD one time & 5600$ USD per annual & for In House development is 3400$ USD one time & 1120$ USD per annual. Above mention charges are valid for both segments. Time taken by NSE to approve Software Vendor under empanelment is near about 3 to 4 Months.
Importance of Empanelled Software Vendors
The first point is to note that you can procure Algo/DMA/CTCL/WAP software only through the empanelled software vendors.
Now the important point- If your Algo/DMA/CTCL software provider does not have their registered office in India, they cannot be part of NSE empanelment list. But you can use them as they fall under Circular No. 003 / 2011 Registration of Foreign Independent Software Vendors (ISVs).According to this circular fee is same as Empanelment Venders.
There are some laws related to selling of AlgoTrading Platform for empanelment or In-house Vendors may sell source code / APIs to trading members only after securing prior written approval of the NSE India for the same.
Right Now there are only 17 Empanelment Software’s Vender under NSE List. List as follows:
M/s. Tata Consultancy Services Ltd.
M/s. Thomson Reuters International Services Pvt. Ltd.
M/s. NSE.IT Ltd.
M/s. Marketplace Technologies Pvt. Ltd. (Formerly known as “ENC Software Solutions Pvt. Ltd.”)
M/s. Geojit Technologies Pvt. Ltd.
M/s. 63 Moons Technologies Limited
M/S Dion Global Solutions Limited
M/s. 3i Infotech Technologies Ltd. (Formerly known as “SDG Software Technologies Ltd.”)
Prism Cybersoft Pvt Ltd
M/s SunGard Solutions (India) Private Limited
M/s. Techspan India Ltd
M/s. Greeksoft Technologies Pvt. Ltd.
M/s. RTS Realtime Systems India Pvt Ltd
M/s uTrade Solutions Private Limited
M/s. Multitrade Softech Pvt. Ltd.
M/s. Symphony Fintech Solutions Pvt. Ltd.
M/s. Saral Information Technologies Pvt Ltd
List of NSE Members those are using In House & ISV Foreign is very big right now it’s 300+
NSE Circulars Regarding Empanelled Software Vendors
NSE Circular no.NSE/CMO/0235/2005 regarding detailing requirement and procedures to be complied with by members desirous of using the CTCL facility: https://www.nseindia.com/content/circulars/cmtr6552.htm
NSE Circular no.NSE/CMO/0029/2000 regarding vendors desirous of being empanelled with the Exchange for providing CTCL solutions: https://www.nseindia.com/content/circulars/cmtr1642.wri
NSE circular no.NSE/CMO/0039/2001: https://www.nse-india.com/content/circulars/cmtr3054.wri
NSE Circular no.NSE/CMO/10 detailing the requirements and procedures to be complied with by vendors for empanelment: https://www.nse-india.com/content/circulars/cmtr3896.htm