May 30, 2024 at 01:41AM
India’s Bombay Stock Exchange (BSE) has mandated encryption for certain messages on its trading platforms using Enhanced Trading Interface (ETI). The policy covers brokers’ price quote requests and aims to maintain data confidentiality. BSE set a deadline for migration to encrypted channels by June 8, 2024, highlighting the importance of encryption in trading.
The meeting notes highlight the recent directive from the Bombay Stock Exchange (BSE) regarding the adoption of encryption for certain messages sent to its trading platforms via the Enhanced Trading Interface (ETI). The BSE issued a notice mandating the encryption of all messages exchanged between member applications and the trading engine, specifying the use of the AES 256 encryption algorithm. It is mentioned that the directive covers brokers’ requests for price quotes and that the implementation was initially scheduled to discontinue non-encrypted channels on May 13, 2024, but was later extended to June 8, 2024.
The notes also reference insights from Jo Finnigan, co-founder of commodity trading platform Topaz, who emphasized the importance of encryption in maintaining data confidentiality between companies and the exchange. It is noted that unencrypted data can be manipulated en route, posing potential security risks.
Additionally, the discussion points to the existing levels of encryption provided, such as TLS encrypted payload connections, and references comments from industry insiders regarding the potential processing time required for encryption and decryption.
Overall, the key takeaways from the meeting notes are the BSE’s mandate for encryption, the potential security implications of unencrypted data, and the additional insights about existing encryption measures and potential processing implications. If there are specific action items or further analysis needed based on these takeaways, please let me know.