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The revised framework, effective June 30, 2025, replaces the earlier short-term fee cycle with an annual tiered charging model.
According to the circular, Messages Per Second (MPS) throttle limit charges will range from Rs 0 for 40 MPS to Rs 5,00,000 for 1,000 MPS, and Rs 5,00,000 per additional 1,000 MPS beyond that.
In a significant development, the BSE has revamped its Messages Per Second (MPS) throttle fee framework for the equity derivatives segment, transitioning to an annualised tier-based pricing model effective June 30, 2025. This overhaul, notified through a circular dated May 27, 2025, replaces the earlier 15-day fee cycle with monthly billing for annual throughput slabs, tightening free usage limits and potentially raising costs for high-frequency brokers.
New Charges and Key Changes
Under the revised system, trading members will now be allowed only 40 MPS for free, against the earlier 10,000 MPS free tier. The new charges start at Rs 5 lakh annually for 1,000 MPS and increase proportionally by Rs 5 lakh for every additional 1,000 MPS, with fees billed monthly. For instance, the effective monthly cost for 1,000 MPS now stands at Rs 41,667.
The new regime discontinues the earlier structure — introduced in October 2024 — where members could avail additional blocks of 1,000 MPS for Rs 10,000 per 15-day cycle, with peak usage assessed fortnightly. BSE has clarified that while the new slabs are defined annually, members can adjust their MPS limits on a monthly basis, provided changes are made by the second last trading day of the month.
“Member-level throttle can be adjusted on monthly basis on second last trading day of the month with applicability from subsequent month,” said a BSE spokesperson.
Impact on Brokers, Vendors, and Clients
According to industry players, a mid-sized broker that previously used 5,000 MPS at no cost would now need to pay Rs 25 lakh annually, raising operational costs and planning complexity.
“Brokers face increased costs and administrative complexity. A broker that previously sent 15,000 MPS for free may now pay Rs 75 lakh annually for equivalent throughput. Smaller brokers also need to carefully allocate MPS across user IDs, risking operational errors if not managed properly,” according to an industry person, who did not want to be named.
Vendors must adapt trading and back-office systems to handle new monitoring, MPS reassignment, and rejection protocols. This creates added development, testing, and compliance workload, he added.
“Clients may be indirectly impacted via higher brokerage rates or degraded order execution if brokers restrict BSE access to save on costs. There’s also concern over whether these changes will reduce liquidity and activity on BSE’s derivatives platform, especially among algorithmic traders,” he said.
What Is MPS & Throttle Limit?
MPS (Messages Per Second) is a measure of trading system speed/capacity — how many messages (like orders, cancellations, modifications) a member can send per second.
A Throttle is a limit or cap imposed on MPS to ensure fair usage of exchange resources, avoid system overloads or abuse, charge users proportionately based on system load.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso… Read More
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