Ministry : Ministry of Finance (SEBI)

Capacity Planning and Real Time Performance Monitoring framework for Commodity D

Subject : ministry of finance

Capacity Planning and Real Time Performance Monitoring framework for Commodity Derivatives Segment of Market Infrastructure Institutions (MIIs)

SEBI has introduced a tailored capacity planning and performance monitoring framework for commodity derivatives exchanges and clearing corporations, replacing previous generic guidelines with specific, enforceable standards to strengthen market resilience and technological robustness in alignment with evolving trading demands.

Key Points

• The new framework applies to all Stock Exchanges and Clearing Corporations with a Commodity Derivatives Segment, mandating adherence to revised capacity and performance standards.
• Installed system capacity must be at least twice (2x) the projected peak load, a less stringent requirement than the 4x norm previously stipulated for equity markets but customized for commodity derivatives.
• If actual capacity utilization exceeds 75% of installed capacity, immediate corrective actions—such as system tuning or capacity expansion—must be taken and overseen by the Self-Regulatory Organization’s Committee on Technology (SCOT).
• Commodity derivatives MIIs must develop and submit a Capacity Planning and Real Time Performance Monitoring Policy to SEBI within three months of the circular (by May 11, 2026), approved by their SCOT and Governing Board.
• The circular supersedes Clause 16.1.2 of the August 4, 2023, SEBI Master Circular for the commodity derivatives segment, marking a formal transition to a more dynamic and responsive regulatory framework.
• The framework incorporates key provisions from SEBI’s December 2024 MII guidelines, adapted “mutatis mutandis,” reflecting harmonization with broader market infrastructure standards.

A New Technological Governance Standard for Commodity Markets

This circular marks a significant regulatory upgrade for India’s commodity derivatives market, introducing a structured, proactive approach to technological capacity and real-time performance management. By mandating enforceable thresholds, oversight mechanisms, and formal policy development, SEBI is closing a critical gap in market infrastructure resilience. The move reflects growing regulatory attention to systemic risks posed by high-speed and algorithmic trading in less-mature market segments. With clear deadlines and accountability assigned to governance bodies, this framework signals SEBI’s intent to ensure technological robustness is no longer an operational afterthought, but a core component of market integrity.