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Consider the following statements regarding Colocation facility w.r.t National Stock Exchange (NSE).
1. Colocation facility allows stock brokers to place their servers in the data centre of NSE.
2. The benefit of colocation is that it allows faster access to the price feed (buy/sell quotes) distributed bythe stock exchange.
3. Securities and Exchange Board of India (Sebi) recently banned the Colocation facility.
Which of the above statements is/are correct?
- a)1 only
- b)1, 3
- c)1, 2
- d)1, 2, 3
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements regarding Colocation facility w.r.t ...
Understanding Colocation Facility at NSE
Colocation facilities are crucial for stock brokers in India, particularly concerning the National Stock Exchange (NSE). Let's examine the statements provided:
Statement 1: Colocation facility allows stock brokers to place their servers in the data centre of NSE.
- This statement is correct. Colocation enables brokers to position their trading servers within the NSE's data center, minimizing latency in data transmission.
Statement 2: The benefit of colocation is that it allows faster access to the price feed (buy/sell quotes) distributed by the stock exchange.
- This statement is also correct. By having servers close to the exchange's infrastructure, brokers can access market data and execute trades more swiftly than those who operate from remote locations. This speed is vital for high-frequency trading and competitive advantage.
Statement 3: Securities and Exchange Board of India (Sebi) recently banned the Colocation facility.
- This statement is incorrect. As of the latest updates, SEBI has not imposed a ban on colocation facilities. However, there have been discussions and regulations to ensure fair access and prevent misuse of the facility.
Conclusion
Based on the analysis, statements 1 and 2 are correct, while statement 3 is incorrect. Therefore, the correct answer is option C (1, 2).
Understanding these nuances is essential for grasping the operational dynamics of stock exchanges and the regulatory environment surrounding them.
Colocation facilities are crucial for stock brokers in India, particularly concerning the National Stock Exchange (NSE). Let's examine the statements provided:
Statement 1: Colocation facility allows stock brokers to place their servers in the data centre of NSE.
- This statement is correct. Colocation enables brokers to position their trading servers within the NSE's data center, minimizing latency in data transmission.
Statement 2: The benefit of colocation is that it allows faster access to the price feed (buy/sell quotes) distributed by the stock exchange.
- This statement is also correct. By having servers close to the exchange's infrastructure, brokers can access market data and execute trades more swiftly than those who operate from remote locations. This speed is vital for high-frequency trading and competitive advantage.
Statement 3: Securities and Exchange Board of India (Sebi) recently banned the Colocation facility.
- This statement is incorrect. As of the latest updates, SEBI has not imposed a ban on colocation facilities. However, there have been discussions and regulations to ensure fair access and prevent misuse of the facility.
Conclusion
Based on the analysis, statements 1 and 2 are correct, while statement 3 is incorrect. Therefore, the correct answer is option C (1, 2).
Understanding these nuances is essential for grasping the operational dynamics of stock exchanges and the regulatory environment surrounding them.
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Consider the following statements regarding Colocation facility w.r.t ...
In August 2009, NSE introduced the colocation facility, which allowed brokers to place their servers in the data centre of NSE. Of course, there was a charge for this service, and only the big brokers can afford it. The benefit of colocation is that it allows faster access to the price feed (buy/sell quotes) distributed by the stock exchange. That is because the broker’s server sits right next to the stock exchange’s server and so the data has to only travel a very short distance from the exchange server to the broker’s server. No, it is not illegal. World over, stock exchanges provide colocation facility to brokers who are willing to pay for it
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Consider the following statements regarding Colocation facility w.r.t National Stock Exchange (NSE).1. Colocation facility allows stock brokers to place their servers in the data centre of NSE.2. The benefit of colocation is that it allows faster access to the price feed (buy/sell quotes) distributed bythe stock exchange.3. Securities and Exchange Board of India (Sebi) recently banned the Colocation facility.Which of the above statements is/are correct?a)1 onlyb)1, 3c)1, 2d)1, 2, 3Correct answer is option 'C'. Can you explain this answer?
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Consider the following statements regarding Colocation facility w.r.t National Stock Exchange (NSE).1. Colocation facility allows stock brokers to place their servers in the data centre of NSE.2. The benefit of colocation is that it allows faster access to the price feed (buy/sell quotes) distributed bythe stock exchange.3. Securities and Exchange Board of India (Sebi) recently banned the Colocation facility.Which of the above statements is/are correct?a)1 onlyb)1, 3c)1, 2d)1, 2, 3Correct answer is option 'C'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Colocation facility w.r.t National Stock Exchange (NSE).1. Colocation facility allows stock brokers to place their servers in the data centre of NSE.2. The benefit of colocation is that it allows faster access to the price feed (buy/sell quotes) distributed bythe stock exchange.3. Securities and Exchange Board of India (Sebi) recently banned the Colocation facility.Which of the above statements is/are correct?a)1 onlyb)1, 3c)1, 2d)1, 2, 3Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Colocation facility w.r.t National Stock Exchange (NSE).1. Colocation facility allows stock brokers to place their servers in the data centre of NSE.2. The benefit of colocation is that it allows faster access to the price feed (buy/sell quotes) distributed bythe stock exchange.3. Securities and Exchange Board of India (Sebi) recently banned the Colocation facility.Which of the above statements is/are correct?a)1 onlyb)1, 3c)1, 2d)1, 2, 3Correct answer is option 'C'. Can you explain this answer?.
Consider the following statements regarding Colocation facility w.r.t National Stock Exchange (NSE).1. Colocation facility allows stock brokers to place their servers in the data centre of NSE.2. The benefit of colocation is that it allows faster access to the price feed (buy/sell quotes) distributed bythe stock exchange.3. Securities and Exchange Board of India (Sebi) recently banned the Colocation facility.Which of the above statements is/are correct?a)1 onlyb)1, 3c)1, 2d)1, 2, 3Correct answer is option 'C'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Colocation facility w.r.t National Stock Exchange (NSE).1. Colocation facility allows stock brokers to place their servers in the data centre of NSE.2. The benefit of colocation is that it allows faster access to the price feed (buy/sell quotes) distributed bythe stock exchange.3. Securities and Exchange Board of India (Sebi) recently banned the Colocation facility.Which of the above statements is/are correct?a)1 onlyb)1, 3c)1, 2d)1, 2, 3Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Colocation facility w.r.t National Stock Exchange (NSE).1. Colocation facility allows stock brokers to place their servers in the data centre of NSE.2. The benefit of colocation is that it allows faster access to the price feed (buy/sell quotes) distributed bythe stock exchange.3. Securities and Exchange Board of India (Sebi) recently banned the Colocation facility.Which of the above statements is/are correct?a)1 onlyb)1, 3c)1, 2d)1, 2, 3Correct answer is option 'C'. Can you explain this answer?.
Solutions for Consider the following statements regarding Colocation facility w.r.t National Stock Exchange (NSE).1. Colocation facility allows stock brokers to place their servers in the data centre of NSE.2. The benefit of colocation is that it allows faster access to the price feed (buy/sell quotes) distributed bythe stock exchange.3. Securities and Exchange Board of India (Sebi) recently banned the Colocation facility.Which of the above statements is/are correct?a)1 onlyb)1, 3c)1, 2d)1, 2, 3Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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Consider the following statements regarding Colocation facility w.r.t National Stock Exchange (NSE).1. Colocation facility allows stock brokers to place their servers in the data centre of NSE.2. The benefit of colocation is that it allows faster access to the price feed (buy/sell quotes) distributed bythe stock exchange.3. Securities and Exchange Board of India (Sebi) recently banned the Colocation facility.Which of the above statements is/are correct?a)1 onlyb)1, 3c)1, 2d)1, 2, 3Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Consider the following statements regarding Colocation facility w.r.t National Stock Exchange (NSE).1. Colocation facility allows stock brokers to place their servers in the data centre of NSE.2. The benefit of colocation is that it allows faster access to the price feed (buy/sell quotes) distributed bythe stock exchange.3. Securities and Exchange Board of India (Sebi) recently banned the Colocation facility.Which of the above statements is/are correct?a)1 onlyb)1, 3c)1, 2d)1, 2, 3Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Consider the following statements regarding Colocation facility w.r.t National Stock Exchange (NSE).1. Colocation facility allows stock brokers to place their servers in the data centre of NSE.2. The benefit of colocation is that it allows faster access to the price feed (buy/sell quotes) distributed bythe stock exchange.3. Securities and Exchange Board of India (Sebi) recently banned the Colocation facility.Which of the above statements is/are correct?a)1 onlyb)1, 3c)1, 2d)1, 2, 3Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Consider the following statements regarding Colocation facility w.r.t National Stock Exchange (NSE).1. Colocation facility allows stock brokers to place their servers in the data centre of NSE.2. The benefit of colocation is that it allows faster access to the price feed (buy/sell quotes) distributed bythe stock exchange.3. Securities and Exchange Board of India (Sebi) recently banned the Colocation facility.Which of the above statements is/are correct?a)1 onlyb)1, 3c)1, 2d)1, 2, 3Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice UPSC tests.
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