Description

NSE issues updated consolidated circular for Co-location facility, replacing the April 2025 version, encapsulating all regulations and instructions from circulars issued up to April 20, 2026.

Summary

NSE’s Member Service Department has issued a consolidated circular (Ref No: NSE/MSD/73958, Circular Ref. No: 29/2026) dated April 29, 2026, superseding the previous consolidated circular NSE/MSD/67756 dated April 29, 2025. This master circular compiles all regulations, instructions, and guidelines related to NSE’s Co-location facility issued up to April 20, 2026. It serves as the single reference document for all participants currently using or planning to use NSE’s Co-location services.

Key Points

  • This consolidated circular replaces NSE/MSD/67756 dated April 29, 2025 as the governing document for Co-location facility
  • Compilation covers all circulars related to Co-location issued up to April 20, 2026
  • Separate circulars govern POP (Point of Presence) based Leased Line connectivity and User ID matters
  • Participants must strictly comply with Co-location access policy, updated guidelines, and all Exchange circulars at all times
  • Non-compliance will result in disciplinary action per Exchange Byelaws, Rules and Regulations
  • Exchange provides Co-location on a best-effort basis with no liability for outages or losses
  • Co-location facility has no separate BCP/DR site and is not available at NSE’s DR facility
  • Participants are responsible for their own Business Continuity Planning and Disaster Recovery systems

Regulatory Changes

No information has been rescinded in this consolidation. The circular clarifies that any future rescissions will not affect:

  • Actions taken or contemplated under previously rescinded guidelines before this Master Circular’s commencement
  • Rights, privileges, obligations, or liabilities acquired under rescinded guidelines
  • Penalties incurred for violations of rescinded guidelines
  • Investigations, legal proceedings, or remedies related to prior guidelines

Compliance Requirements

  • All Co-location participants (current and prospective) must adhere to the Co-location access policy and guidelines at all times
  • Participants must comply with all Exchange communications, instructions, circulars, and directions
  • Colo participants are advised to conduct thorough risk assessments covering potential impacts on their business operations
  • Participants must independently establish and maintain adequate BCP/DR systems, as NSE’s Co-location facility does not provide a separate BCP/DR site
  • Any technical queries related to Co-location Services should be directed to NSE’s designated contact channels

Important Dates

  • April 29, 2026: Date of this consolidated circular (NSE/MSD/73958)
  • April 20, 2026: Cutoff date for circulars compiled into this consolidation
  • April 29, 2025: Date of the superseded consolidated circular (NSE/MSD/67756)

Impact Assessment

This circular primarily impacts algorithmic traders, high-frequency trading firms, and brokers using NSE’s Co-location facility. The annual consolidation exercise does not introduce new regulatory requirements but reaffirms existing obligations. The explicit disclaimer that NSE bears no responsibility for infrastructure failures (power, cooling, systems, connectivity) underscores the operational risk that colo participants must independently manage. The absence of a BCP/DR site for Co-location means participants with continuity requirements must maintain off-site infrastructure at their own cost. Overall market impact is moderate, confined to technologically intensive participants dependent on low-latency Co-location access.

Impact Justification

Annual consolidation of co-location guidelines affecting algorithmic and high-frequency trading participants; no new restrictions introduced but compliance obligations reaffirmed.