(i) Direct connectivity between colocation facilities of recognized stock exchanges.
(ii) Colocation services / data centre facilities entirely/ partially provided and managed by a third party data centre service provider.
(iii) Stock exchanges allowing stock brokers / data vendors to connect to the stock exchange Trading system over an internal Local Area Network (LAN).
(i) Colocation services provided by a third party or outsourced from a third party is deemed to be provided by the stock exchanges. Stock exchange shall ensure complete control and jurisdiction over the matters related to its co-location facility. Further, stock exchange will remain responsible and accountable for actions of such outsourced entity with respect to colocation services.
(ii) Stock exchanges shall submit a quarterly compliance report to SEBI regarding the outsourcing services after placing it before the board of the respective stock exchange.
(iii) Facility that allows stock brokers / data vendors to connect to the stock exchange trading system over a Local Area Network (LAN) shall fall within the definition of “Colocation / proximity hosting” as provided in SEBI circular dated May 13, 2015.