SEBI eases capacity norms for commodity derivatives platforms amid under-utilisation

SEBI eases capacity norms for commodity derivatives platforms amid under-utilisation

• SEBI reduces commodity derivatives capacity requirement to 2x projected peak load
• MIIs must act if system utilisation exceeds 75 percent of installed capacity
• New rules take effect May 11, 2026; policies to be submitted within three months

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Citing persistent under-utilisation of technology infrastructure in the commodity derivatives segment, the Securities and Exchange Board of India (SEBI) has relaxed its capacity planning requirements for stock exchanges and clearing corporations operating in this space. The move is aimed at aligning infrastructure mandates more closely with actual and projected system usage, while continuing to safeguard market stability and investor protection.

Under the earlier provisions of the SEBI Master Circular, trading systems in the commodity derivatives segment were required to maintain installed capacity of at least four times the peak order load. SEBI has now rationalised this requirement. The revised framework mandates that installed capacity be maintained at a minimum of two times the projected peak load for the segment, effectively easing the infrastructure burden on Market Infrastructure Institutions (MIIs) amid lower utilisation levels.

However, the regulator has retained a strong performance-linked safeguard. If actual utilisation of any critical system component in the commodity derivatives segment exceeds 75 percent of installed capacity, the concerned MII must immediately initiate corrective measures. These may include application fine-tuning, optimisation of system resources, or capacity augmentation. Such actions must be undertaken under the supervision of the MII’s Standing Committee on Technology (SCOT).

Further, the utilisation-trigger mechanism must be formally incorporated into each MII’s Capacity Planning and Real Time Performance Monitoring Policy, ensuring a structured and documented approach to monitoring and intervention.

SEBI has also extended the broader framework on capacity planning and real-time performance monitoring for MIIs to the commodity derivatives segment, with the revised capacity multiplier and 75 percent utilisation trigger being the key modifications.

Stock exchanges and clearing corporations have been directed to submit their segment-specific policies to SEBI within three months, after securing approvals from SCOT and their respective governing boards. The circular will come into effect on May 11, 2026.