- Industry: Financial services
- Region: APAC
- Headquarters: Mumbai, India
- Company size: 500 employees
For two decades, BSE struggled to meet business needs with proprietary technologies. The exchange could not innovate, and the high cost of upgrades made its system economically inefficient. The Indian stock exchange built a new trading system using open source technology from Red Hat. As a result, BSE has expanded from 10 million to 400 million orders per day, achieved the fastest trading speed in the world, and reduced its total cost of ownership (TCO) by 90%.BSE is a 2016 Red Hat Innovation Awards winner
BSE innovates with Red Hat
BSE relies on open source to break free from vendor lock-in so that they can continuously innovate using Red Hat technologies.
Stock traders demand a trading platform that's fast and reliable. A difference of even milliseconds while executing a trade can mean making money—or losing it. But BSE was struggling with an old, slow trading infrastructure. “We were stuck,” says Kersi Tavadia, chief information officer of BSE. “We could not break free. We could not innovate.” BSE was losing market share and its trade volume was down. The trading platform was, as Tavadia now says, rapidly approaching the point of “extinction.” The trading platform needed an entirely new system to meet the demands of modern traders.
BSE builds world's fastest trading system with Red Hat solution
BSE partnered with Red Hat Consulting to build a brand-new trading system, using an open source solution for scalability and faster transaction speeds. The new trading platform ensures operational efficiency, along with easier deployment and maintenance, allowing BSE to meet the needs of modern traders. The transition to the new system was seamless, with zero downtime, thanks to Red Hat support. “We have found the support from Red Hat to be exemplary,” Tavadia says.
Since its shift to the Red Hat solution, BSE has increased trading volume from 10 million orders per day to 400 million per day. Transaction speeds are now more than 1,000 times faster than before, making BSE the world’s fastest trading platform. Traders can also take advantage of new, innovative services, such as currency trading.
In terms of cost, BSE has reduced its hardware expenses by 66% and lowered total cost of ownership by 90%. It also reduced manual activities substantially. Tasks that once took 4 hours to accomplish now take less than 1 hour, allowing BSE to reduce IT staffing needs. “Red Hat is now our backbone,” says Ashishkumar Chauhan, chief executive officer at BSE. “Our business cannot run if Red Hat is not there.”