I dont know how practical it sounds but if NSE and BSE can open up their data centers for brokers to have a backup server in it - then you guys need not depend on internet connection.
Leased line can even go down in case of accidents, or earthquakes.
Whereas server to server communication in same data center can happen without internet.
Probably you guys may already have one, I was just ideastorming yesterday.
This is like asking the exchanges to become AWS or Azure or any of the cloud services that most online platforms will be using to power the internet trading applications. Also, there are 3 exchanges, if you host your platform in one, you will still have to connect to others via something. This isnāt a viable solution.
As I said earlier, some of the legacy technologies at the exchanges have to improve to cover this connectivity risk issue. Allow a single customer to be connected to the exchange via multiple CTCL simultaneously. Even if one goes down, the connection remains live for the execution management system (EMS) to keep track of order status without reconciling. But it isnāt easy for exchanges to upgrade as well. Technical debt gets built up over time, and making changes become hard as you get bigger.
By the way, not all issues brokers face are due to connectivity issues. There are many times broker systems are at fault as well.
Just curious
How often does the frontend poll the backend or exchange to update the order states to see whether it changed ?
You donāt poll. Exchanges update as soon as there is any change in status. The only time you poll or run a recon is when there is a disconnection.
You can go through here for more.
https://www.nseindia.com/trade/platform-services-connectivity
As a trader what would you suggest us to do in case of situation like this other than reducing position sizing? What should be the next best move for exchange to eliminate the reoccurrence?
Since BFO is a new product, as a trader, it makes sense to trade with as little as possible. There are many risks with a new product outside the technological risk. Ideally, traders should test strategies with small quantities in the first few weeks of any new product.
We are following up with the exchanges to ensure this doesnāt happen again. But this is absolutely outside our control. Next Friday, we will put up a nudge reminding users that it is a new product and to trade with caution.
Thanks. Typically this is how it works as mentioned in NSE protocol doc. We sent an order request and we get a response.
Now if we send an order and we donāt get a response from the exchange then I guess kite shows Open pending , Cancel pending , or Modify pending. Once orders are in this state am assuming the broker systems would have to send in some request to the exchange to get an updated response (Unless ofcourse the exchange keeps sending in order state updates at periodic intervals). Which is true - broker polls for state change update after a certain timeout (connectivity issue or some other issue) or exchange auto post the update ?
Letās be optimistic and think positive 
hey, Iām so sorry that you had to read such a hurtful and disrespectful comment yesterday. No one deserve that kind of comments. Please donāt let it affect you and we know you are a wonderful person and I appreciate you for who you are. Believe better days ahead 
Once the connectivity is back up, we lapse orders for which we are yet to receive status and reconcile (poll). So if an order was stuck in open pending etc, it gets cancelled if not already placed on exchange and if placed on the exchange you get the latest status.
By the way, the order status messages when the order is not placed (like open pending, modify pending, cancel pending) can vary based on the EMS the broker is using. The majority of the market uses Omnesys, but there are newer players like Rupeeseed, Kambala, etc, who might call it differently.
This is the reason i still trade. I know one day glitch wil be on my side.
something to cheer about on a fine sunday 
I feel sad for users who had lost, even I had a couple of these with market crashing and nsefo not workingā¦it was way backā¦but my loss was was at 12kā¦
As you said Nithin, the exchanges has to upgrade their systemsā¦ try creating pressure with all brokers .
Thank you for all your repliesā¦ You are CHATGPT of zerodha ā¦
reading all this, looks like its a fault of BSE, they should take responsibility, if they cant refund traders they should atleast rollback all trades to previous day so nobody gained or lost anything on that unfortunate day.
Yes index and stock will not match previous day positions but previous day hedge will limit the loss on next working day.
I donāt think you should wait till Friday, you should put it right away, so that people donāt even start their positions on Monday and wait till Friday and realize that it is new product and then if they are in loss or something their emotions will ask them to wait for a little to get to profit or to earn more if they are already in profit (with big positions). My 2 cents
Yes, we will add the nudge by evening. Its being tested internally.
Hey
Do you play Call of Duty Mobile? I play with a guy with the same username as you so just wondering.
No brother.
@nithin Just curious, can an insurance product be created around this problem, b/w traders paying a premium and an insurance company covering such unexpected losses? I think, though not sure, that such insurance exists in the West, right?
if traders considered outliers in risk mgmt, they would hedge all trades ( making spreads) and there are ample deeper OTMs which would amount to that premium that you would pay for insurance.
Naked selling will induce all sorts of risks and that to me is the root cause. Alot of damage can be mitigated.
No, it doesnāt exist. Impossible to underwrite such an insurance policy.
