Algo Trading

The new rules - expected to be finalised in coming months - come at an awkward time for two main bourse operators, National Stock Exchange (NSE) and BSE Ltd, which are both drumming up investor interest for their respective planned listings.

India's "flash boys", or high-frequency traders, are pushing back against the domestic markets regulator and in some cases putting investments in new strategies on hold, saying proposed tighter rules could render their ultra-fast systems redundant.

A stock brokers' association has asked the Securities and Exchange Board of India (Sebi) to reconsider its proposed restrictions on super-fast algorithmic trading saying such measures could be disruptive for the capital markets.

Proposals by Securities and Exchange Board of India (SEBI) to tighten rules on algorithmic trading could help boost confidence in markets and won't hurt the country's second biggest bourse, the head of Indian exchange operator BSE Ltd told Reuters.

India's capital market regulator Securities and Exchange Board of India (SEBI) on Friday released a long-pending discussion paper to tighten regulations on algorithmic trading.

With the Securities and Exchange Board of India (Sebi) looking at stricter norms to regulate high-frequency trades (HFT), leading algo trading system providers say the usage of this technology is set to surge in the country and be at par with developed economies.

To prevent possible manipulations in trading activities, Sebi Chairman U K Sinha on Thursday told brokers that there should be a level-playing field for high frequency trades and cautioned that strict action will be initiated against such violations.

Stock exchange BSE will conduct a mock trading session on Saturday to test software related to trading and risk management, including algorithmic trade.

The BSE has asked trading members involved in algorithmic-based (algo) trades to participate in the mock session which would be held for the exchange's equity, equity derivative and currency derivative segments.

Markets regulator Sebi is reportedly working on a new set of norms for algorithmic trading, which refers to orders on bourses that are generated using high-frequency and automated execution logic.

The BSE Sensex plunged over 700 points, while the broader Nifty declined over 200 points on Wednesday. Dealers said the selloff in Sensex and Nifty was triggered by algorithmic trading platforms. Algo-trades go by several names such as automated trading or high-frequency trading.

The BSE Sensex and Nifty fell more than 2 per cent on Wednesday to their lowest in four months, on strong selling on algorithmic trading platforms, while continued offloading by foreign investors amid retrospective tax worries also weighed.

The Centre and stock market regulator Securities and Exchange Board of India (SEBI) were on Tuesday asked by Delhi High Court to respond to a plea seeking to abolish automated or algorithmic trading at stock exchanges as the facility was not available to small investors.

"Based on recommendations of technical advisory committee (TAC) and secondary market advisory committee (SMAC), it has been decided to put in place broad guidelines for algorithmic trading in the securities market,' Sebi said in a notification.

The new rules - expected to be finalised in coming months - come at an awkward time for two main bourse operators, National Stock Exchange (NSE) and BSE Ltd, which are both drumming up investor interest for their respective planned listings.

India's "flash boys", or high-frequency traders, are pushing back against the domestic markets regulator and in some cases putting investments in new strategies on hold, saying proposed tighter rules could render their ultra-fast systems redundant.

A stock brokers' association has asked the Securities and Exchange Board of India (Sebi) to reconsider its proposed restrictions on super-fast algorithmic trading saying such measures could be disruptive for the capital markets.

Proposals by Securities and Exchange Board of India (SEBI) to tighten rules on algorithmic trading could help boost confidence in markets and won't hurt the country's second biggest bourse, the head of Indian exchange operator BSE Ltd told Reuters.

India's capital market regulator Securities and Exchange Board of India (SEBI) on Friday released a long-pending discussion paper to tighten regulations on algorithmic trading.

With the Securities and Exchange Board of India (Sebi) looking at stricter norms to regulate high-frequency trades (HFT), leading algo trading system providers say the usage of this technology is set to surge in the country and be at par with developed economies.

To prevent possible manipulations in trading activities, Sebi Chairman U K Sinha on Thursday told brokers that there should be a level-playing field for high frequency trades and cautioned that strict action will be initiated against such violations.

Stock exchange BSE will conduct a mock trading session on Saturday to test software related to trading and risk management, including algorithmic trade.

The BSE has asked trading members involved in algorithmic-based (algo) trades to participate in the mock session which would be held for the exchange's equity, equity derivative and currency derivative segments.

Markets regulator Sebi is reportedly working on a new set of norms for algorithmic trading, which refers to orders on bourses that are generated using high-frequency and automated execution logic.

The BSE Sensex plunged over 700 points, while the broader Nifty declined over 200 points on Wednesday. Dealers said the selloff in Sensex and Nifty was triggered by algorithmic trading platforms. Algo-trades go by several names such as automated trading or high-frequency trading.

The BSE Sensex and Nifty fell more than 2 per cent on Wednesday to their lowest in four months, on strong selling on algorithmic trading platforms, while continued offloading by foreign investors amid retrospective tax worries also weighed.

The Centre and stock market regulator Securities and Exchange Board of India (SEBI) were on Tuesday asked by Delhi High Court to respond to a plea seeking to abolish automated or algorithmic trading at stock exchanges as the facility was not available to small investors.

"Based on recommendations of technical advisory committee (TAC) and secondary market advisory committee (SMAC), it has been decided to put in place broad guidelines for algorithmic trading in the securities market,' Sebi said in a notification.