IP MIGRATION

Technical Write-up

Version 1.0
13-June-2008
Table of Contents
Introduction......................................................................................................................... 3
Need for IP Migration......................................................................................................... 4
Timelines and Phases.......................................................................................................... 5
Migration Activity Plan ...................................................................................................... 6
Existing Setup – X.25 without TAP .............................................................................. 6
Stage 1 Setup – X.25 with TAP ...................................................................................... 7
Stage 2 Setup - IP and X.25 co-existence ....................................................................... 8
Final Stage Setup - IP Migrated...................................................................................... 9
Schedule for Migration ..................................................................................................... 10
Stage wise ..................................................................................................................... 10
Geography wise ............................................................................................................ 10
New Features & Benefits with IP ..................................................................................... 11
Multiple Member end Scenarios................................................................................... 11
Higher Throughput & Infrastructure Consolidation ..................................................... 11
Improved Market data................................................................................................... 12
Auto Failover ................................................................................................................ 12
BCP Connectivity ......................................................................................................... 12
New IP Wide Area Network ............................................................................................. 13
NSE’s Nationwide Network ......................................................................................... 13
NSE’s Satellite Network .............................................................................................. 14
IP Connectivity Options.................................................................................................... 15
VSAT Based ................................................................................................................. 15
Lease line Based ........................................................................................................... 16
Lease line and VSAT combined ................................................................................... 17
New Components in Member end setup........................................................................... 18
TAP Server & TAP IP .................................................................................................. 18
Market Data Server ....................................................................................................... 18
NSE Subnet................................................................................................................... 18
Router............................................................................................................................ 18
IP IDU........................................................................................................................... 18
Changes in NSE applications............................................................................................ 19
Changes in Terminology................................................................................................... 20
Location Locking .......................................................................................................... 20
Dual locking.................................................................................................................. 20
Introduction
NSE provides a platform for online trading to the trading community of the
country. Its infrastructure allows for fairness and transparency in the nation’s trading
activity, by utilizing modern satellite technology and terrestrial leased line network to
connect traders across the country.

The system currently uses the X.25 protocol over the WAN to allow for high
performance yet reliable communication for the purpose of securities trading.

With the slow, but steady outdating of the X.25 protocol, a need is seen for the migration
of the Exchange’s WAN protocol to an alternate. TCP/IP is proposed as it is an industry
standard with both hardware and software resources being well available.

The Application and the network infrastructure, in its entirety, is being migrated to the
TCP/IP protocol.

With implementation of Trading Access Point (TAP), member end software have been
migrated to TCP/IP thereby having half the trading path migrated to IP. This way only
NSE provided applications and Network infrastructure will undergo IP changes.

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Need for IP Migration

• Limitation imposed by current infrastructure

– Bandwidth cannot be increased beyond 128kbps
– No Expansion & Scalability
– X.25 technology has become obsolete with no further developments and
support from Equipment Manufacturers
– Un availability of Technical Skill set for the X.25 protocol

• Consolidation of Member infrastructure

– Leased lines
– Servers

• Lower cost to maintain and operate IP Lines

– Standard and widely used IP devices

• Better Connectivity & Redundancy

– Better Connectivity and uptime with the new IP Backbone
– Transparent Connectivity to BCP Site

• More open standard based information technologies to aid in speedy development

of products
– Improved broadcast

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Timelines and Phases

Q1 2008 Q2 2008 Q3 2008

TAP X.25 IP Migration IP Migration

CM & FO Production Complete
begins

X.25 Co-existence IP

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Migration Activity Plan

During the migration from X.25 to IP a member end setup will go through several phases
to finally get to the IP Migrated stage. During each stage there are several contingencies
available to ensure that the members trading activities are not impacted at all and
alternative paths are available as and when needed.

Existing Setup – X.25 without TAP

Most of the members will be having a connectivity similar to the as show in above
diagram. In such a setup the member is using complete X.25 Infrastructure and Softwares

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Stage 1 Setup – X.25 with TAP

Several members are in Stage 2 of IP Migration where they have TAP for X.25 installed
and configured. In this stage the Member end software like CTCL and NEAT for Cash
and F&O are migrated to TAP protocol which is on TCP/IP. For simplicity all the TAP
applications are hosted on a single TAP server.

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Stage 2 Setup - IP and X.25 co-existence

This is the stage where end to end IP Path will be made available to members. The X.25
and IP WAN will co exist during this stage. Members will be able to fall back to their
X.25 infrastructure in case the need for that arise. This will be a stability period for IP
changes. IP Router is a device used for Lease lines. Instead of IP Router a IP IDU will be
used for VSAT based connections.

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Final Stage Setup - IP Migrated

The final stage end to end IP connectivity without any X.25 component will look as
shown above. Based on the migration progress and stability period for the IP components
NSE expects to have all the members in this stage by Q3 of 2008.

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Schedule for Migration
Stage wise

Stage Start
Existing – X.25 without TAP Started
Stage 1 – X.25 with TAP Started
Stage 2 - X.25 and IP Co existence Aug 2008
Final Stage - IP Migrated Oct 2008

Geography wise

Area Start
Mumbai Aug 2008
Delhi Aug 2008
Amdavad Sept 2008
Kolkata Sept 2008
Chennai Sept 2008

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New Features & Benefits with IP
Additional facilities available with the new IP Network.

Multiple Member end Scenarios

Different members have different trading needs. NSE has designed some member end
scenarios keeping in mind this varied need. The scenarios are explained in detail in the
section of IP Connectivity options.

The members will have following scenarios options to select from:

Single VSAT
Single Lease line
Single Lease line with VSAT backup
Dual Lease line terminating at One POP
Dual Lease line terminating at Two POPs

Higher Throughput & Infrastructure Consolidation

Since the X.25 bandwidth is limited, Member have invested in several 64kbps or 128kbps
links for meeting their trading volume needs. With introduction of IP 2 Mbps bandwidth
will be allowed. This will eliminate the need for multiple connects and the required
infrastructure to meet the volume requirements. By Consolidation of User IDs of multiple
X.25 media on a single IP Link with sufficient bandwidth member will save on
Infrastructure cost and improve manageability. Consolidation of multiple X.25 links is
advisable as IP has 2 Mbps links. Consolidation will be most feasible in a physical
location or premises of the Member where they have multiple X.25 links.

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Improved Market data

NSE will provide a better quality Market Data with the commissioning of 2 Mbps IP
Links. This new market data will improve the rate refresh on the scripts being traded. The
new VSAT will also have capacity to transfer this high bandwidth Market Data.

Auto Failover

Uptime is very important in the trading business. To address this need NSE will allow
multiple service providers links to be terminated on the member end router. This router
will be configured to have connected lease lines in active passive auto failover mode.
This way the if one media fails the other media will start handling the traffic seamlessly.

BCP Connectivity

Business continuity is another important requirement in the securities trading industry.

NSE has a full fledged BCP site to ensure uninterrupted trading is available to the
members in case of any disaster at the Primary site at Mumbai. VSAT technology already
allowed members to connected to the BCP site for trading. With the new IP WAN even
the terrestrial lines will be able to connect to BCP seamlessly through the POPs. This will
further improve the uptime of business in case of adverse events man made or natural.

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New IP Wide Area Network

NSE’s Nationwide Network

NSE is rolling out a new IP based Wide Area Network with Point of Presence (POP) at key
Trading centers like Mumbai, Delhi, Chennai, Kolkata etc.

A PoP is a place where leased line services are available to NSE members. NSE will have nine
(9) PoP’s spanned across the country. Members will have the option to subscribe to the nearest
PoP in the respective location.

The distribution of PoP’s spanned across the country is as below.

1. Mumbai (3 PoPs)
2. Delhi (2 PoPs)
3. Chennai (1 PoP)
4. Kolkata (2 PoPs)
5. Amdavad (1 PoP)

All the PoPs across the country will be connected to NSE Data Center located in Mumbai as well
as the BCP site located in Chennai.

POPs

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Service Provider is an entity that provides services (e.g Leased Line Services) to other entities.

The various Service Providers who will deliver services to NSE Members are as mentioned
below:
1. Tata
2. Reliance
3. Bharti
4. MTNL
5. BSNL

NSE’s Satellite Network

NSE will upgrade the current VSAT backbone to the advanced SkyEdge technology with
IP upgrade. This up gradation will allow members a 256 kbps interactive traffic capacity
and 2 Mbps of broadcast capacity. With the improved bandwidth members will also get
improvement in throughput for interactive and broadcast.

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IP Connectivity Options

VSAT Based

Member Office

CTCL Server
NEAT TAP Server VSAT ODU
for
TAP CM /FO
CTCL TWS & UDP Server
Application
IDU - IP

Member Front Office LAN Member’s TAP Server & VSAT Subnet

Figure above shows the basic setup and connectivity at the members office for a VSAT
connection. All the components to the Left of the TAP server is already existing at the
members premises. Apart from these even the VSAT ODU at member location will be
reusable for IP Connectivity. A Server with two Network interface card (NIC) will be
used to host the TAP and NSE UDP server applications. NEAT and CTCL Applications
will interface with the TAP server on the Member LAN while the TAP server will
interface with NSE on the WAN using the NSE provided IP address. Each TAP server
will be assigned an WAN IP address by NSE. The WAN side IP address of TAP server is
also referred to as TAP IP address. The applications on the TAP server will be provided
by NSE. Also, NSE will provide the IP IDU. Please note that the once converted the
VSAT will not be usable for the X.25 communications.

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Lease line Based

This is another option of member end scenarios available with IP. In this scenario we
have 2 medias terminating on a single router. NEAT, CTCL and other member front
office application need not undergo any changes if the member is in stage 2 or higher. A
TAP server with two NIC cards will be used to allow TAP to connect to Front office
applications and the NSE Host over the WAN. The router (provide by NSE) will have
one or more lease lines terminating. In case of multiple medias auto failover option will
be available for the members. In the above configuration a link will be primary for a
particular type of traffic (Interactive or Market Data). When the primary link for a traffic
fails the same traffic will seamlessly start flowing on the other link which is
preconfigured as backup for that traffic. This way both links will be usable and have a
backup in case of any failure. Member may opt for a slightly modified scenario with just
a single lease line too. This will cost the member auto failover facility as there is no
backup path.

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Lease line and VSAT combined

This is a scenario for members who want VSAT as backup and Lease line as their
primary link for trading activities. In this scenario both lease line and VSAT will
terminate on the member end router. Router will be configured to use lease line as long as
the link is up and failover to the VSAT when the lease line faces some issues. This way
the VSAT is used as a pure backup only.

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New Components in Member end setup
TAP Server & TAP IP

The server machine on which the TAP applications will be running is called as the TAP
server. Member can install the NSE provided TAP application on recommended
configuration machines. The TAP server is required to have 2 Network Interface Cards
(NICs). One NIC will be used to connect on the WAN and with the NSE provide TAP IP
address while the other one will be connected on the member office LAN for NEAT and
CTCL applications to connect. Location locking for a member will be done on the basis
of TAP IP. Each user will be allowed to be locked to one or more TAP IP.

Market Data Server

The server machine on which the NSE provided UDP server application will be running
is called as the Market Data server. This server has the same requirements as that of a
TAP server. Members may host both the NSE UDP Server application and TAP
applications on the same TAP server.

NSE Subnet

Every Member end scenario will be assigned a set of IP addresses. This set of IP
Addresses is called at the NSE Subnet and will be used for allocation of TAP Server IP
Address.

Router

For communication on IP Network using the lease lines, member end scenario will
require a Router. Scenario which do not have a single Lease line wont need a Router.

IP IDU

For communication on IP Network using the VSAT, member end scenario will require to
replace the X.25 IDU (Indoor Unit) with a IP IDU. Outdoor unit (ODU) for the VSAT
will be the same as X.25 and wont require a replacement.

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Changes in NSE applications
NSE will provide IP Version of Trading Access Point (TAP) and NSE Broadcast Server.
The applications interfacing with these two software will not undergo any changes.

IP enabled TAP will use only the IP connectivity to the Exchange for communication.
Members in Stage 2 of IP Migration will be well verse with the TAP and its benefits.
Members can refer TAP circular dated 13 March 2008 available on NSE India website
[http://www.nseindia.com/content/circulars/faop10453.zip].

NSE UDP server will also connect to exchange on the IP link and relay the Market Data
on the members local LAN over the UDP protocol as always. NEAT and CTCL can be re
configured to receive the Market data received via the IP links easily.

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Changes in Terminology

Location Locking

Location locking will be based on TAP IP address. Each NSE user id will be locked to at
least one TAP server. Based on the Member end scenario a TAP server may be connected
to one or more media (Lease line or VSAT). Thus, even though the TAP is connected to
more than one media, locking to one TAP IP will be considered as one locking only.

Dual locking

Current understanding of Dual Locking will change slightly. With IP, location locking
will be done on a TAP Server IP address. Dual locking will thus be across TAP IPs. A
TAP Server will be connected to a Member end router or IDU based on the scenario
selected by member.

<<end of document>>

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