"Network Availability And Speed Critical For NCDEX"

NCDEX provides a platform for commodities and derivatives trading in India. The exchange runs mission-critical applications for members and brokers. Nirmalendu Jajodia, chief – Technology & Operations, speaks to Biztech2.0 on NCDEX’s network infrastructure, policies, and issues such as network congestion.

What is the role of the network layer at NCDEX?

Typically, the backbone on which all our applications run – whether it’s LAN (handles network traffic from local members) or WAN (used by brokers) – constitute various mediums. The WAN runs on VSATs with low bandwidth connect; some members trade on point-to-point lease lines, and there are managed data MPLS circuits. The Internet VPN is also a service option available for members to trade.

For network monitoring, we use HP OpenView, which provides a visibility path. This is initially to check the performance of the network elements, and subsequently to take care of the bandwidth in case it gets choked. The tool helps identify if the choke is caused by the media or an application. After the problem is detected, we take necessary recovery action, such as closing nonessential applications that generate too much traffic and overuse bandwidth. Another option can be to give priority to information packets from a particular application.
How do you handle conventional network problems such as congestion, flow control and multiplexing?

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We see the network from two viewpoints. One is totally from the availability front; of having a redundant link and provisioning that has to be dealt with in a preactive mode. The second is about network problems such as link congestion or slow response that occur at multiple levels, such as malfunctioning of any of the network devices at the root – perhaps at the service provider’s or NCDEX’s end.

We have to monitor the network from the exchange and the members’ or brokers’ side. The network on our side has to assure on a regular basis that it is taking the maximum load with adequate control and providing an opportunity for members to trade as and when they want. Currently the network speed provides an opportunity to trade every two seconds. Network control on the members’ or brokers’ side is regarding the upgradation of trade requests.

Now if they are experiencing a slow response, we can monitor the network and revert about the status of the link performance with the exchange and guide them accordingly. So we regularly keep track of the highs and lows of trade requests coming through various mediums, and allocate bandwidth accordingly.

What is the Network Security Policy adopted by NCDEX?

One of the major policy guidelines is that there should be no single point of failure. Authentication is also an important area whereby there should be a uniform authentication procedure for all. We also authenticate physical devices, so members cannot trade from just any available terminal. Data is encrypted at both sides, as a result of which end-to-end encryption is assured.

There are standard policies on how a password should be constructed, how often it needs to be changed, who is authorised to change it, responsive action in case the password expires before changing, how to get a password reset etc.

How do you view the idea of open source software being adopted at NCDEX?

Well, we have strongly adopted Red Hat Linux. There are two important issues as far as open source is concerned. The services should be backed by quality technical support. Issues regarding licensing have to be addressed as well – whatever the user develops on top of the application should also be available under the same license as under the original backbone.
There are chances of a sudden spurt of transaction requests when NYMEX opens in the evening due to a close relationship between contemporary prices in both exchanges. Could this result in network congestion?

The agricultural commodities market closes at 5 p.m. while metals and commodities are still open for trading. So there’s not much traffic on the network when NYMEX opens for trading.

VSAT performance is weak during sun outages, which regularly occur when the sun passes directly behind a satellite. There is no particular duration for an outage; normally it lasts half an hour. Members are notified that the trading will be closed equivalent to the time of the outage, and will be open for business subsequently. We have been working very well with the service provider on this.
Interestingly, the effect of outage decreases gradually, so members who are no longer affected can commence trading while those who fall at the edges are unable to do so.