Brokers on the National Stock Exchange (NSE) were unable to update their margin positions in the system on Tuesday due to a technical glitch in the systems. However, trading was not disrupted in any manner.
According to brokers, the glitch in the system led to a scenario wherein they were not able to view or update their margins.
Every broker has to maintain a certain amount of margin with the exchange, based on which the trading quantum is ascertained.
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Simply put, if the exchange systems do not allow the broker to put in more margin, the trading limit will be hit.
The Association of National Exchanges Members of India (ANMI), the umbrella body of brokers, wrote to the National Stock Exchange (NSE) highlighting Tuesday’s glitch and said that it caused huge financial losses to many brokers.
“Few members reported their margin files are not getting updated and hence exceeding 85% limit, apparently forcing [them] to square off the positions, running into huge financial loss to clients,” ANMI said in the letter to NSE.
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“It is further submitted that it is becoming very difficult for members to handle such situations as one cannot infuse or remove margins etc.,” the association added in the letter.
“'The trading systems were working normally. Some members faced problems with the support systems of the exchange due to an inadvertent error on the part of the vendor. Normal operations resumed from 11:15 a.m.,” said an NSE spokesperson.