The technical glitch at CrowdStrike on Friday caused the Microsoft software global IT outage that affected the airlines, business and stock exchanges. But, the Indian stock markets remained unaffected during the glitch due to their advance IT systems.
On Friday, when the whole world was dealing with the Microsoft IT outage, the Indian stock exchanges, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) remained unaffected by the CrowdStrike cyber security outage with Microsoft software globally. Whereas, the London Stock Exchange was highly affected by the outage.
BSE and NSE remained unaffected by the outage.
The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) of India did not experience any impact from the Microsoft outage, which affected various services globally. Wondering! How is it possible? Do you know how much did the NSE and BSE spend on IT to stay unaffected? In terms of IT spending as compared to global peers, the situation varies significantly. According to a report shared by Business Today, the NSE spends almost Rs 570 crore, which is relatively modest compared to the London Stock Exchange Group (LSEG) at Rs 6,556 crore and NASDAQ at Rs 1,949 crore. Despite this lower IT expenditure, NSE's total cost stands at Rs 3,036 crore, with total revenue of Rs 12,692 crore.
However, both exchanges are known to invest significantly in IT infrastructure due to the critical nature of their operations. This includes systems for trading, clearing, settlement, and regulatory compliance.
Comparison with Global Peers
Major global stock exchanges such as the New York Stock Exchange (NYSE), Nasdaq, London Stock Exchange (LSE), and Tokyo Stock Exchange (TSE) typically have substantial IT budgets due to the scale and complexity of their operations. These exchanges also invest heavily in technology to ensure the robustness, security, and high availability of their trading platforms.
Meanwhile, it is important to note that the exact comparisons can be challenging without specific financial disclosures, global exchanges generally set aside significant portions of their budgets for IT. The scale of operations and the level of technological advancement in each market also play crucial roles in determining IT spending.
