A whistleblower( someone working in a hedge fund at Singapore) alleges that NSE had indulged in market manipulation to the tune of 100 crores over a period of three years. What are the allegations against NSE, Omnesys and others?

  • Tick by Tick data was disseminated via TCP/IP instead of UDP for three years and there was no load balancer in place.This meant that the person who could connect to the server that had the least load and be first in the queue was at an advantage. The information on server loads was leaked out.
  • The info of the exact start of time of the primary and backup servers was leaked out to Omnesys and an unnamed individual
  • Massive Multi legged IOC orders were executed by those who were privy to the primary and backup server start times
  • NSE provides certain special privileges to hedge funds and HFT shops based out in Singapore, who then use to game the system

Link to the whistleblower’s detailed note