Chapter 2F: Two servers, not one!!! And this is something no one ever told you about the NSE scam. And where the unlimited financing required to create HDFC and Faering Capital possibly came from.
The connection between the two servers is exactly what COSL had designed for Citibank at Sugar House (Sakhar Bhavan) in Nariman Point. I had personally been part of a system crash revival one midnight in 1990. IDM serviced and managed that link. In 2001 when the same link protocol was used to design fault tolerant servers for mobile telephony – Citicorp had panicked and bought into that company. I was a Board member of that company.
Out of the two servers, one server connected to the network. This means all the bank terminals and ATMs were connected to this server. This server was mirrored in a backup server. There was no load on the back up server. A transaction closes only when it mirrors on both servers. On that fateful night in 1990, all ATM servers stopped working because the link malfunctioned. The telecom leased lines connecting MTNL to DOT had failed. So what did we do. We put the Bombay ATMs on the backup server. When the link came up, we forgot about it. A few weeks later the Branch Head Sabharwal called me. He said that we had done a brilliant job. Suddenly his ATM in the branch was working way way faster. Better than it had ever worked. Ohhhh! We forgot to shift the ATMs back to the transaction server. We did that and the ATM became slow again.
No one to date has understood the NSE colocation scam except the beneficiaries. Mainly Citicorp and HDFC. The colocation scam wasn’t about connecting some terminals directly to the NSE transaction server. Photons in a fibre optic cable move at the speed of light. How much longer in terms of time is zero distance vs say a 1,000 kms.
Nothing. Not fast enough for a human or machine to trade. This is a false bogey.
The NSE Scam was about connecting some terminals – regardless of where they were – to the backup server. Just like the ATM on that fateful night in Sugar House.
And now you had a machine that was printing cash. At least rs 2000 cr per day. Now add the days. This was way more than the supposed Rs 50,000 crores.
All one had to do is to set up an arbitrage system between the slower main server and the faster backup server. U have to beat the transaction before it completes by feeding directly to the backup server.
It is a currency printing machine. With zero risk. It is not smart gambling. It is not technical analysis. It is network design. You know the bet made by someone. You place a counter bet in advance and collect the difference. Every minute. Every day. It is a rigged casino.
There was zero intelligence required.
And who made the money ? And how much.
No one knows. I think rs 180,000 crores. Across six players, two custodians, three banks. And where did this money Exported ?? By whom ? How ?
This you will have to wait for.
The benami ownership of NSE may have the key.
