India INX Derivatives Simplified

 Introduction

A modern derivatives exchange is only as good as the technology it runs on and the checks that govern it. At India INX, state-of-the-art tech infrastructure and routine regulatory audits form the backbone of trust, reliability, and innovation.

In this post, we break down the tech compliance requirements and audit procedures that shape operations behind the scenes.

High-tech professionals monitor dynamic trading algorithms and compliance dashboards in a sophisticated financial exchange control room, embodying trust, precision, and security.

Technology Infrastructure and Cybersecurity

 Core IT Requirements for Members

Every registered member of India INX must maintain a robust IT setup that ensures:

• High availability during trading hours

• Fast and secure order processing

• Real-time data integrity
  

Key Components:

System Requirement	Description
Order Management System (OMS)	Must support India INX protocols and be securely firewalled
Connectivity	Allowed through leased lines, VPNs, or co-location for low latency
Backup Systems	Members must maintain a disaster recovery site (DRS)
User Access Controls	All terminals must have authorized, logged user access

 Example: If a Trading Member’s system goes offline, their DRS must take over seamlessly to prevent market disruption.

 Cybersecurity Compliance

Members must comply with IFSCA’s Cybersecurity and Cyber Resilience Framework, which includes:

• Appointing a Chief Information Security Officer (CISO)

• Conducting periodic vulnerability assessments

• Maintaining a Security Operations Center (SOC)

• Notifying the exchange of cyber incidents within 6 hours
  

 Automated Monitoring

• All transactions, login attempts, and system alerts must be automatically logged

• Audit trails are to be stored for at least 5 years
  

 Chapter 12: Regulatory Audits and Compliance Reviews

 Annual System Audits

India INX mandates an independent systems audit for:

• Trading members

• Clearing members

• Infrastructure service providers
  

Scope of Audit Includes:

• OMS and connectivity tests

• Cybersecurity defenses

• Data backup and recovery

• Access control mechanisms
  

 Must be conducted annually by an exchange-approved auditor

 Regulatory Inspections by IFSCA

India INX and its members are also subject to direct inspections by IFSCA, focusing on:

• Financial compliance

• Risk management

• IT preparedness

• Investor grievance handling
  

 Non-Compliance Outcomes

Non-Compliance Type	Possible Consequences
Minor lapses	Corrective actions, timelines imposed
Major/systemic risks	Trading suspension, public warning, monetary penalties
Willful concealment	Cancellation of membership, blacklisting

 Summary: IT and Audit = Exchange Integrity

Element	What It Secures
OMS & Backup	Order continuity and disaster resilience
Cyber Protocols	Defense against hacking, data theft, and system abuse
Annual System Audit	Prevents tech failures and exposes vulnerabilities
Regulatory Inspections	Ensures ethical, financial, and procedural transparency

 Final Thought

India INX doesn’t just operate as an exchange it monitors, tests, and upgrades its systems constantly to deliver a world-class trading experience. With these tech and audit controls, both retail and institutional players can trade with full confidence in system integrity.