Sebi in talks with stake holders on algo trading norms
Mumbai
Market regulator Securities and Exchange Board of India (SEBI) will come out with final norms on algorithmic trading and high frequency trades (HFT) after consultations with the government as well as brokers and technology providers, chairman UK Sinha said on Tuesday.
“We have a technical advisory committee at Sebi that is looking into all inputs that have been received on algo trading and co-location facilities. After that, we propose to have interaction with various groups, the technology providers of these high speed trades, the firms that are using HFT, small brokers, small traders, investors’ associations and consultations with government and RBI. Then a final view will be taken,” Sinha said.
He was speaking on the sidelines of a CII-BRICS summit.
The National Stock Exchange was last week ordered by Sebi to audit its high-speed algorithmic trading amid allegations that some brokers who may have had co-location arrangement with the exchange may have got unfair speed advantages.
Read: Machines vs humans; algo trade impacts stock market traders
Co-location means the server of the trader will be located in the same data centre as that of the Exchange, upon payment of a fee.
These would, theoretically, help such a trader execute high-speed algorithmic trading of securities slightly faster than his peers whose servers are located at a distance, due to the time-lag that the others would face as the data travels between servers.
Sebi had in August released a discussion paper on algo trading.
Some of Sebi’s proposals include introduction of minimum resting time between such HFT orders — that is, time when an order is received by the exchange and when it is actually allowed to execute. It also wants to introduce delays of few mili-seconds in order processing and have separate queues for orders from co-located servers and other servers. These could create a level playing field among traders, it is believed.
Read: Sebi chairman on why bond markets shiver when central banks sneeze
Zoom founder becomes world's 130th richest person, transfers $6 billion shares
After a blip, oil shows gains as focus returns to tightening market
Air India staff’s takeover plan fails to make the cut
- Meenakshi Mallik, the airline’s commercial director who spearheaded the ambitious attempt to take over the state-run carrier, said in a three-page letter to employees that the consortium was not shortlisted.
Oil flirting with $70 challenges world’s economic recovery
Vedanta, others vie for Shipping Corp
- With 59 vessels and 3,281 staff, SCI is the largest Indian shipping company in terms of capacity
China rakes up India’s ban on apps, FDI curbs at WTO
- China said it acknowledges India’s efforts to enhance competitiveness in manufacturing and services sectors through ‘Make In India’ and ‘Digital India’ initiatives but remains concerned that some of the measures are not consistent with WTO principles.
Petrol, diesel prices likely to inch higher as Brent hits $70
- Rallying crude may also complicate the Reserve Bank’s plan to tame inflationary pressures and spur economic growth
Record GST collections expected in March, set to hit ₹1.30 lakh crore
- The revenue in March may cross the record Rs.1,19,875 crore collected in January by at least Rs.10,000 crore.
Uber to impart gender sensitisation to one lakh drivers by 2021-end
India's domestic air traffic falls 37% to 78 lakh passengers in Feb: Report
American Airlines to offer $5 billion in notes to repay government debt
Brazil's Petrobras receives six board nominations from government
Sensex closes 35 points higher at 50,441, Nifty rises by 18 pts to end at 14,956
- After fighting multiple bouts of volatility during the session, the BSE gauge Sensex settled 35.75 points or 0.07 per cent higher at 50,441.07.
Easy Trip Planners IPO opens: Here's all you need to know about the issue
