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.
- 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.