904-NMS-1220-15-F4.DOC generated and booked. The same can also operate in reverse to minimise a potential loss. Of course, these are utterly basic examples. I imagine the actual models are far more sophisticated and complicated, for use in complex scenarios for highly evolved financial and security transactions. The point is, however, that these trades are automatic and computer-generated, and they happen at very high speed and in high volumes. 8. The anonymous letter sent to SEBI and Ms. Dalal is a lengthy dissertation on not only the evolution of online trading at the NSE but also the very many pitfalls encountered in the last five years or so. It points to the initial deployment of relatively lowbandwidth leased lines to multicast price streams and this is said to have been done using a technology by then already deprecated so that the information dissemination was sequential, thus allowing the person or persons who first received the data to act on it well before others downstream received the data. In the intial days, traders were allowed to deploy the NSE’s application programming interfaces or APIs to write their own programs. The system, so the anonymous letter seems to say, was not designed for high traffic volumes; and, given the sequential (as opposed to simultaneous) dissemination of data (as might be achieved using the User Datagram Protocol or UDP, for instance, as other exchanges even then did), often meant that the last in line to be connected to the data stream was often well behind the person who connected first. The NSE then apparently had limited servers with unbalanced loads, and this in turn generated what is called a latency (the time required for transmission of data packets) for the last user. At the time, this gave the first mover (or connector), who accessed a 8 of 30 ::: Uploaded on - 10/09/2015 ::: Downloaded on - 03/02/2020 18:08:37 :::