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INDUSTRY FACT FILE · CAPITAL MARKETS

Main Products and Services in Capital Markets and Securities

What market infrastructure institutions and intermediaries provide, the systems behind each service, and where those systems create cybersecurity and compliance exposure.

In this document

1. How market participants earn their money

2. Products and services by participant

3. Trading, clearing and settlement

4. Depository, custody and registry services

5. The systems behind the products

6. Product trends that change the attack surface

7. Mapping products to Codec Networks engagements

1. How market participants earn their money

Revenue stream	How it works	Security relevance
Transaction charges	Exchange and clearing fees on trades	Platform availability during market hours is directly revenue-critical
Brokerage and subscription fees	Per-trade or subscription pricing on trading platforms	App and API security protects client trust and revenue
Depository and DP charges	Account maintenance and transaction charges	Integrity of holdings and transfers is the core promise
Interest and margin funding	Margin trading facilities and interest on client funds	Risk systems and fund-flow integrity must be protected
Registry and data services	Corporate actions, investor services and market data	Investor records and data feeds are high-value targets

2. Products and services by participant

Participant	Main products	Main services
Stock exchanges	Equity, derivatives, currency, commodity and debt trading platforms; indices; market data	Listing, trading, surveillance, investor protection, Market SOC (NSE and BSE)
Clearing corporations	Clearing and settlement services, collateral management	Risk management, margining, settlement guarantee
Depositories	Demat accounts, e-voting, pledge and corporate action systems	Holding and transfer of securities, investor services
Stock brokers	Trading apps, web platforms, APIs, algo and smart-order tools, margin trading	Order execution, research, client onboarding, fund and securities settlement
Depository participants	Demat account services, pledge and transfer processing	KYC, account servicing, investor support
Custodians	Custody and fund accounting for institutions and FPIs	Settlement, corporate actions, reporting
KRAs and RTAs	Central KYC records; investor registers	KYC validation, corporate actions, investor services

3. Trading, clearing and settlement

Investors place orders through broker apps, websites and APIs; orders flow through the broker's order and risk management systems to the exchange, where they are matched. Clearing corporations then determine obligations and settle funds and securities, with depositories crediting holdings to investors' demat accounts. India's move to shorter settlement cycles has compressed the time available to detect and correct errors or fraud.

Speed raises the stakes

Faster settlement and app-based trading mean that unauthorised trades or transfers can complete before an investor notices. Detection and response must be measured in minutes, not days.

4. Depository, custody and registry services

Depositories and their participants hold investors' securities, process transfers and pledges, and support corporate actions and e-voting. Custodians provide institutional custody, and RTAs maintain issuers' investor records. These services concentrate investor identity and holdings data, making them attractive targets for data theft and unauthorised-transfer fraud.

5. The systems behind the products

Title: Figure 2: Where cyber risk sits in the trade lifecycle — systems at each stage and the attacks that typically target them. - Description: Figure 2: Where cyber risk sits in the trade lifecycle — systems at each stage and the attacks that typically target them.

Figure 2: Where cyber risk sits in the trade lifecycle — systems at each stage and the attacks that typically target them.

Product / service	Systems that deliver it	Key cyber and compliance touchpoints
Retail trading	Mobile and web apps, API gateways, OMS/RMS, exchange connectivity	CSCRF controls, app and API testing, DDoS resilience
Algorithmic trading	Algo engines, vendor strategies, colocation, risk checks	Change control, risk limits, kill switches, vendor assurance
Exchange and clearing	Matching engines, surveillance, clearing and settlement systems	MII-level CSCRF controls, resilience and RTO/RPO testing
Depository services	Depository systems, DP back-offices, pledge and transfer modules	Privileged access, maker-checker, investor alerts
KYC and onboarding	e-KYC, KRA interfaces, document storage	Identity assurance, data protection, cloud security
Registry services	Investor databases, corporate action systems	Segmentation, backups, data protection

6. Product trends that change the attack surface

Trend	What is changing	Security implication
App-first retail trading	Most new investors trade only through apps	Account takeover and fake apps become primary threats
APIs and algo access	Programmatic trading for retail and institutional users	API abuse and faulty algos can affect markets quickly
Cloud adoption	Back-office and analytics workloads move to cloud under SEBI's framework	Shared responsibility, misconfiguration and exit readiness
Shorter settlement cycles	Less time between trade and settlement	Faster detection and reconciliation are required
AI in surveillance and advice	AI models for surveillance, research and support	Model abuse, data leakage and new AI vulnerabilities

7. Mapping products to Codec Networks engagements

If the entity offers…	Recommended starting engagement
Retail trading apps and APIs	Trading app and API testing, anti-phishing and fake-app monitoring, CSCRF audit
Algo trading	Algo platform change-control and risk-limit review, vendor code review
Exchange or clearing services	Resilience and red team testing, SOC efficacy, RTO/RPO validation
Depository or DP services	Back-office access and maker-checker testing, transfer-alert review
Registry or KYC services	Segmentation and backup testing, data protection and cloud review
Cloud-hosted services	Assessment against SEBI's cloud framework

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Email: mktg@codecnetworks.com Web: www.codecnetworks.com

Note: Descriptions are general and based on public information available as of October 2026. Market rules are governed by SEBI regulations and circulars, which change frequently.