Kamal Ghorui
Markets regulator Sebi on Thursday discontinued the Investor Risk Reduction Access (IRRA) platform for stock brokers with immediate effect saying the system had become redundant due to stronger cyber security, disaster recovery and business continuity mechanisms in the securities market, PTI reported.The IRRA platform, launched on October 1, 2023, was introduced to provide brokers with an alternative access route for trading during disruptions in their trading services.However, Sebi said multiple technology-driven reforms implemented in recent years had significantly improved the operational resilience of stock brokers.These include Business Continuity Planning and Disaster Recovery (BCP-DR) norms, stronger cyber security and cyber resilience frameworks, implementation of the Market Security Operations Centre (M-SoC), and improvements in the technical glitch management framework.According to the regulator, brokers have also adopted advanced technological systems enabling smooth transition between primary and alternate operational sites during disruptions, alongside the emergence of independent cold sites for business continuity.Sebi further noted that stock exchanges already provide a backup mechanism through the Contingency Pool Trading facility, which allows brokers to square off clients’ open positions during operational disruptions through dedicated exchange-connected terminals.The regulator said exchanges informed Sebi that the IRRA platform had become “structurally redundant” as brokers had not used it since its launch.“Since its inception, the platform has not been accessed by the stock brokers, largely due to the implementation of robust regulatory measures, significant technological innovations within trading operations and the availability of the Contingency Pool Trading facility,” Sebi said in its circular.“Accordingly, based on stakeholder feedback and the aforementioned factors, it has been decided to discontinue the IRRA platform with immediate effect,” it added.Sebi has also advised stock exchanges to further review and strengthen the Contingency Pool Trading framework.
