* BSE halts trading for about 3 hours due to network outage
* BSE CEO says looking at cause, will report to regulators
* Outage comes as BSE steps up competition against NSE
(Adds quote, background)
By Abhishek Vishnoi and Rafael Nam
MUMBAI, July 3 India's second-biggest exchange
operator BSE Ltd halted trading across all its markets for about
three hours on Thursday due to a network outage, marking the
fourth time this year the bourse has suffered from technical
The latest trading disruption at BSE Ltd raised concerns
about the sturdiness of the systems at a bourse that runs the
BSE index, or the Sensex, considered the benchmark
share index in India.
The BSE has been stepping up its competition against India's
biggest bourse operator National Stock Exchange Ltd (NSE),
including by adopting the Eurex trading platform owned by
Deutsche Boerse AG.
The competition from the two exchanges has run from the
NSE's Nifty share index to currency derivatives, and
increasingly electronic and algorithmic trading.
The BSE CEO said the exchange operator was looking into the
root causes of the outage and would send reports to the
government and regulators.
"We need to evaluate the root cause of the network outage,"
said Ashishkumar Chauhan, chief executive, told reporters at a
"We will set up a panel to probe the issue and will also
send preliminary reports to SEBI, and finance ministry."
The BSE had earlier suspended trading across all of its
markets, and said network service vendor HCL Technologies Ltd
was working to resolve the issue.
An HCL Technologies spokesman had no immediate comment.
"Due to a network outage being currently faced, BSE has
decided to close all markets," the exchange said in a statement
sent via text message on Thursday morning.
The BSE said it would cancel all orders placed before the
The trading disruption was the longest suffered by the BSE
since at least 2010, according to a spokesman, and comes after a
slew of issues this year, although a couple of those cases in
April were tied to the introduction of the trading system owned
by Deutsche Boerse.
"This is not desirable when we have the best of the IT
players and global standards in India," said Nilesh Dedhia,
founder of NTD Trading, which specialises in providing
algo-based trading platforms.
"It gives a bad signal to global investors as people around
the globe watch Sensex more than Nifty."
The BSE has long sought to narrow the lead by NSE, which
currently dominates trading across most segments. According to
data from the World Federation of Exchanges, shares worth $85
trillion were traded in the BSE in 2013 compared with $479
trillion for the NSE.
(Additional reporting by Indulal PM; Editing by Eric Meijer and