The Securities and Exchange Board of India (SEBI) has proposed a significant overhaul of the institutional trade processing system to enhance operational efficiency and reduce risks. The current centralized trade-processing hub, which routes messages through a single service provider, has been criticized for adding latency and increasing costs. SEBI's new proposal suggests a direct communication framework utilizing application programming interfaces (APIs), allowing service providers to interact directly without the central hub. This change is expected to improve scalability and resilience while cutting costs for market participants. Notably, 95%-99% of all Straight Through Processing (STP) traffic currently passes through one provider, creating a single point of failure. The new system aims to mitigate these risks and streamline processes, with no required changes for existing users. Additionally, SEBI has proposed optional API-based communication to further reduce manual errors associated with file uploads and downloads. Stakeholders have until June 9, 2026, to provide feedback on the proposal.