NSE Co-location Scam - Alleged Early Ticks advantage and its Truth Revealed

The area of NSE co-location controversy works on two major servers. One is the primary TBT architecture and another one is secondary TBT POP server. Whenever the primary server fails, the market turns towards the secondary TBT POP server for the data flow. Now, according to the whistle blower, the scam stated that some people got early ticks through the secondary server, which helped them to prepare for the market and get some monetary help, which the other members did not get.

Now, this is a controversial topic with people having multiple ideas. Well, the real truth is that this scam is a lie and according to the NSE pros, every member collocated at NSE were given the same leverage like everyone else and there was no alleged preferential access.

Is it possible to get early ticks?

This forms the major point when it is about the co location scam associated with NSE co-location. The first question that pops in your mind is whether anyone actually got any ticks earlier or not. And the answer is positive as nobody is recorded to get hold of the preferential access to gain early ticks. Data dissemination occurred simultaneously to all the members, who are part of the co-location. So, chances are minimal to nil for anyone to actually get ticks earlier than the rest of the members.

Now, the whistle blower stated that some people got the early ticks, which helped them to make quite a great deal of money out of it. Even if that was the case, then the truth will prove the point otherwise. Even if these ticks were disseminated earlier by a fraction of second or a mili-second, still front running is not possible. It helps in proving the point that the entire idea behind earlier ticks and making unfair money was nothing but a big lie.

Preferential access:

Some people might ask that in NSE Co-location scam, was this accused preferential access consistent. Before you get this answer, it is mandatory to know what preferential access actually is, as that might help you get a clear picture.

Access is given to some of the preferred members and not to everyone, in the intention to gain materially. This preferential access is only referring to the TBT POP secondary servers of the co-location facility under NSE.

This was mainly a big allegation made by Ken Fong, the whistle blower. However, this allegation of giving preferential access to some of the members is absolutely wrong.

Source: Deepak Sanchety