The National Stock Exchange of India (NSE) is set to significantly upgrade its trading infrastructure by reducing system response time from microseconds to nanoseconds starting April 11. This technological leap could enable the exchange to process nearly 100 million transactions per second, marking one of the most major upgrades in its history as trading volumes surge across segments.
Speaking at an event organised by the Association of NSE Members of India (ANMI), Managing Director and CEO Ashishkumar Chauhan stated that the new system would be nearly 1,000 times faster than current speeds. At present, NSE operates at around 100 microseconds, handling approximately 50–60 lakh transactions per second. For context, one second equals one million microseconds, while a nanosecond represents one billionth of a second.
Chauhan emphasized that the move aligns with the exchange’s vision of delivering “real-time finance,” while acknowledging that ultra-low latency will particularly benefit high-frequency and institutional traders by minimizing execution delays.
However, he cautioned that faster systems and higher transaction volumes also elevate cyber security risks. He stressed that maintaining robust cyber security standards will be critical to ensuring uninterrupted operations at such massive scale.
To accommodate rising demand, NSE is expanding its colocation (colo) facilities. Currently operating more than 2,000 colo racks, the exchange plans to scale capacity to approximately 4,500 racks. Colocation allows trading members to install their servers within the exchange’s data centres, reducing network latency and enabling faster market access — a key advantage for high-frequency traders.
Chauhan also noted that artificial intelligence could help vendors develop more cost-efficient and optimized solutions.
In addition to technological advancements, NSE is diversifying its product offerings. Electricity futures and gold futures are on its roadmap, while contracts for difference (CFDs) are under development. The exchange is also preparing to introduce 10 gm gold futures, following recent approval from the Securities and Exchange Board of India (Sebi).