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How the new IRRA platform, a 'trapeze net' for investors, will work

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How the new IRRA platform, a 'trapeze net' for investors, will work

  • All major stock exchanges in India, including BSE, NSE, NCDEX, MCX, and MSE have jointly developed the Investor Risk Reduction Access (IRRA) platform.
  • IRRA aims to act as a safety net for investors in the event of technical glitches faced by trading members or stock brokers.

Purpose of IRRA

  • The IRRA platform has been designed to reduce risks for investors participating in the market.
  • It is designed to mitigate risks for investors during technical glitches at trading members' ends, both at the primary and disaster recovery sites.
  • It provides investors with an opportunity to close open positions and cancel pending orders when faced with disruptions.

Why was there a need for it?

  • With increasing dependence on technology in the securities market, there has been a rise in instances of glitches in trading members’ systems.
    • Some of these lead to disruption of trading services and investor complaints.
  • In such instances, investors with open positions are at risk of non-availability of avenues to close their positions, particularly if markets are volatile.
  • IRRA was developed as a contingency service, providing a safety net for investors in the face of unforeseen outages or technical issues.
  • It ensures they have avenues to manage their portfolios even in volatile markets.

Functionality of IRRA

  • IRRA can be invoked by trading members when technical glitches impact their ability to service clients across exchanges.
  • Stock exchanges can also initiate the enablement of IRRA, if needed, monitoring parameters like connectivity, order flow and social media posts.
  • Once invoked,after basic checks, the platform
    • Downloads trades of the trading member from all trading venues
    • Sends notifications to investors using internet trading or wireless technology, allowing them to access IRRA.

IRRA Benefits for Investors

  • Investors can view and cancel pending orders across all segments and stock exchanges from the order book.
  • They can square off/close open positions across segments and exchanges.
  • They can cancel orders across segments that are pending at the exchanges.

Accessing IRRA

  • Investors can access IRRA through a secure login system using their Unique Client Code (UCC) or PAN number.
  • Access is granted through a one-time password (OTP) sent to registered mobile numbers and email IDs.
  • A web URL and mobile application are provided for accessing IRRA, ensuring ease of login and navigation.

Migration and Reverse Migration

  • Trading members can request migration to IRRA before or after the market session, ensuring a smooth transition.
  • Reverse migration is allowed based on the trading member's request and confirmation from all exchanges.
  • Only one reverse migration is permitted during a trading day.
  • Sufficient testing is required before resuming business from the original trading system.

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