NSE to slash trading latency to nanoseconds from Apr 11, targets 100 mn transactions per second

India’s capital markets are preparing for a major leap in trading technology, with the National Stock Exchange of India (NSE) set to reduce its system response time to nanoseconds from April 11 — an upgrade that could enable the exchange to process nearly 100 million transactions per second. 

The move represents one of the most significant infrastructure overhauls in the exchange’s history, aimed at keeping pace with surging trading volumes and the growing dominance of algorithmic strategies. 

Speaking at an event organised by the Association of NSE Members of India (ANMI), NSE Managing Director and CEO Ashishkumar Chauhan said the new architecture would increase trading speed almost 1,000 times from current levels. 

At present, NSE’s response time is around 100 microseconds, allowing it to handle roughly 5-6 million transactions per second. A nanosecond — one billionth of a second — marks a dramatic reduction in latency, placing the exchange among a select group of global markets operating at ultra-low latency levels. 

“We are going to give you response time in nanoseconds. Your speed is going to increase manifold,” Chauhan said, underscoring the scale of the technological shift. 

Why latency matters 

The upgrade comes as algorithmic and high-frequency trading (HFT) account for an increasing share of market activity. In such environments, even microsecond-level delays can influence trade execution, pricing efficiency, and liquidity. 

Ultra-low latency systems allow: 

• Faster order matching and execution 
• More efficient price discovery 
• Improved handling of peak-time trading surges 
• Greater competitiveness with global exchanges 

Market participants say the transition could reinforce India’s reputation as a technology-driven financial marketplace at a time when retail participation remains high and institutional flows continue to deepen. 

Scaling infrastructure for future demand 

To support the new system, NSE is expanding its colocation (colo) infrastructure — facilities that allow trading firms to install servers inside the exchange’s data centre to minimise network delays. 

The exchange currently operates more than 2,000 colo racks and plans to scale capacity to around 4,500 racks. Colocation services are widely used by institutional and high-frequency traders seeking the fastest possible access to market data and execution systems. 

Chauhan also pointed to the growing role of artificial intelligence in helping technology vendors design more efficient trading and analytics solutions at lower cost, suggesting AI-driven optimisation could become an integral part of future market infrastructure. 

Expanding beyond equities 

Alongside its technology push, NSE is preparing to broaden its product suite into new asset classes. Electricity futures and additional gold-linked contracts are part of the exchange’s roadmap, reflecting rising investor demand for diversified hedging tools. 

The exchange is also preparing to launch 10-gram gold futures, which recently received approval from the Securities and Exchange Board of India (SEBI). Contracts for difference (CFDs) are also under development.