Brokerage firms are constantly under pressure to stay ahead of the competition. They need to make sure that they are using the latest technology and techniques to provide their clients with the best possible service. With constant advancements of technologies and integrations used by these brokerage systems, technical issues do arise.
With the increase in volumes of trading with retail trading, the National Stock Exchange of India (NSE) – one of the largest stock exchanges of the world, needed a system to prevent technical incidents and outages across different market participants.
To address these technical operational incidents Securities and Exchange Board of India (SEBI) formed a working group. This SEBI working group proposed proactive monitoring and problem detection system – Log Analytics and Monitoring Application (LAMA).
What is LAMA?
LAMA is an API based performance data gathering and early warning system that is designed to help brokerage firms identify and address potential problems before they cause an outage. It collects data from the broker’s trading systems and uses machine learning to identify patterns that could indicate a problem. If LAMA detects a potential problem, it will generate an alert so that the brokerage firm and exchange can take preventive corrective action. It is a cost-effective way to prevent outages and reduce the risk of financial losses.
NSE India has adopted LAMA and LAMA reporting is a requirement for brokerage firms. There are heavy penalties for non-compliance with LAMA. Non-compliance is NOT an option.
| LAMA Key Metrics | |||
| Application | Hardware | Database | Network |
| Log Monitoring | CPU | Replication Status | Bandwidth |
| Request/Second – throughput | Memory | Replication Queue Size | Packet Error Count |
| Response Time | Disk | Replication Bandwidth | |
| Trading API Failure Count | Uptime | Replication Latency | |
| Client Authentication Failure Count | |||
| Historical Requests/Second | |||
| Historical Response Time | |||
Reporting to Exchange
All the LAMA Key metrics details reporting is to be done at every 5 minutes for 24 hours on all trading days.
LAMA compliance challenges
Time-consuming: Time consuming manual posting of data to LAMA is not even an option because of the frequency and the extent of data reporting requirement.
Inadequate monitoring data: Most brokerage firms don’t have adequate monitoring on all the required systems to be able to report required data to NSE at required intervals.
How Applicare helps?
Applicare provides an out of the box implementation of LAMA that can be deployed in any brokerage firm’s environment in a matter of hours. With our current banking and brokerage customers, Applicare has been reporting data to NSE since NSE LAMA has gone live. We have worked closely with our customers, NSE LAMA team and our partner TA3S in developing and fine tuning Applicare LAMA implementation.
Applicare is scalable to meet the needs of any stock broker, regardless of their size. This means that it can be used by both large and small stock brokers.
The Applicare is an asset for any organization that wants to improve its IT operations. It helps you in identifying and troubleshooting problems, improve performance, and make better decisions about your IT infrastructure. It is built from ground up by administrators and developers who faced these challenges every day and wanted to automate the repetitive tasks.
Applicare provides full stack observability, self-detects problems and becomes foundation for self healing.
Applicare Agent
The Applicare agent is a key component of the Applicare monitoring solution. The agent is easy to install and use. It collects data from your virtual machines, systems and applications, and then sends it to the Applicare controller for processing and analysis.
Applicare Controller
The Applicare controller posts the data to LAMA API. All the posted data is saved for the historical purpose. Historical records can be used to identify patterns and trends that can help brokerage firms make better decisions. By analyzing them, brokerage firms can identify patterns that may indicate a problem with their trading system.
LAMA Key Metrics Dashboard
Application
Hardware
Database
Network
LAMA API Failure Notifications
If there was a failure while posing the key metrics to the LAMA API gateway, the Applicare notification service will notify the brokerage firms with its efficient logging mechanism. The notification service can be customized to meet the specific needs of the customers.
Conclusion
Brokerage firms are responsible for the financial losses of their clients. If an outage occurs, the firm may be liable for the losses incurred by their clients. Applicare can help protect the firm’s reputation by preventing outages and keeping their trading systems running smoothly. Applicare is known for its flexibility and ease of use, which allows it to be customized to meet the specific needs of each customer. Applicare makes the LAMA data posting process hassle-free and user-friendly for the brokerage firms.
Getting started with Applicare is easy. Simply register and get access to free on prem or in cloud Applicare.