SEBI May Tighten algo trading Rules

India's capital market regulator said on Friday it was considering tightening rules for algorithmic trading, citing concerns about fair access to markets. The Securities and Exchange Board of India (SEBI) said it was looking at various potential limits on so-called algo traders, including imposing "random speed bumps," which would randomly delay execution of some orders.Get live Indian Stock Market News Updates visit us : http://www.ripplesadvisory.com/aboutus.php or Get Two Days Free Trial just on One Missed Call @98-27-80-80-90 

 

The regulator is also looking at introducing order randomisation, a process that would mean trades are settled on a random basis and not on a first-come-first-serve one. In India, algorithmic trading, like elsewhere around the world, is becoming a bigger part of daily trading, prompting regulators to question whether investors with no access to this rapid form of trading are being disadvantaged. 

 

SEBI said that algorithimic orders now account for around 40 percent of trades executed in exchanges in India. "SEBI is examining various options to allay the fear and concern of unfair and inequitable access to the trading systems of the exchanges," the regulator said.