Description
NSE implements AES-256 GCM encryption and immediate order acknowledgement for Commodity Derivatives segment interactive messages to enhance security posture.
Summary
NSE is implementing enhanced security measures for Commodity Derivatives (CO) segment by introducing AES-256 GCM encryption with additional authentication for interactive messages and immediate acknowledgement for order-related messages. This follows a similar implementation in Currency Derivatives segment. Members using NEAT Adapter and NNF protocols must migrate to the new encryption mechanism during a coexistence phase, after which the existing encryption mechanism will be discontinued.
Key Points
- New encryption uses AES-256 bits GCM encryption with additional authentication, replacing existing mechanism
- Introduction of immediate acknowledgment messages sent instantly upon receiving orders
- Combination of TLS 1.3 security protocol and AES-256 bits symmetric encryption
- Interim coexistence phase will allow both old and new encryption mechanisms
- New NEAT Adapter version 1.0.23 will be released with new encryption mechanism
- Existing NEAT Adapter version 1.0.20 will be discontinued (date to be communicated separately)
- Members can continue using existing CA certificate mentioned in circular NSE/MSD/67695 dated April 25, 2025
- Updated CO NNF API document Version 6.3 available on NSE website
Regulatory Changes
NSE is upgrading security infrastructure for Commodity Derivatives segment with:
- Enhanced Encryption: Migration from existing encryption to AES-256 GCM encryption with additional authentication
- Immediate Order Acknowledgement: New acknowledgment messages confirming instant receipt of orders by Exchange
- Network Configuration Changes: New ports and IP configurations for encrypted data flows
Compliance Requirements
For All Members Trading in Commodity Derivatives:
- Configure new interactive session parameters for encrypted data flows
- Use designated IP Address: 172.19.15.85 (Gateway Router)
- Configure appropriate ports based on user type:
- Port 10857: NEAT, NNF Users (existing encrypted mechanism)
- Port 10859: NEAT, NNF Users (new encryption with MD5 checksum removal)
- Port 10861: Only for NNF Users (new encryption & immediate acknowledgement)
- Network configuration: Gateway IPs Subnet 172.19.15.0, Mask 255.255.255.128, Port 10850
For NNF API Users:
- Continue using existing CA certificate from circular NSE/MSD/67695 dated April 25, 2025
- Refer to CO NNF API document Version 6.3 for implementation details
- Available at: https://www.nseindia.com/trade/platform-services-neat-trading-system-protocols
For NEAT Adapter Users:
- Upgrade to new NEAT Adapter version 1.0.23 when released
- Prepare for discontinuation of version 1.0.20
- Additional authentication of encrypted message flow required
Important Dates
- December 02, 2025: Circular issued
- December 13, 2025: Release of new interactive parameters for NEAT Adapter and NNF users
- December 13, 2025: Release of new NEAT Adapter version 1.0.23 with new encryption mechanism
- To be communicated separately: Discontinuation date for existing NEAT Adapter version 1.0.20
- To be communicated separately: Discontinuation date for existing encryption mechanism for NNF users
Impact Assessment
Operational Impact:
- All members trading in Commodity Derivatives segment must upgrade their systems
- Testing and migration required during coexistence phase
- Potential trading disruption if members fail to migrate before discontinuation dates
- IT teams need to reconfigure network parameters and update applications
Technical Impact:
- Members using proprietary systems must implement AES-256 GCM encryption
- Integration of immediate order acknowledgement logic required
- Network infrastructure changes (IP, port configurations)
- NEAT Adapter users must upgrade software version
Security Benefits:
- Enhanced security posture with stronger encryption (AES-256 GCM)
- Additional authentication layer for interactive messages
- TLS 1.3 protocol implementation
- Improved order confirmation with immediate acknowledgement
Business Continuity:
- Coexistence phase minimizes disruption risk
- Members have time to test and validate new encryption before mandatory migration
- Separate communication planned for final discontinuation dates ensures adequate preparation time
Impact Justification
Mandatory technical upgrade affecting all members trading in commodity derivatives segment. Requires system changes, testing, and migration to new encryption mechanism with defined deadlines.