With India's leading stock exchange getting ready for an initial public offering of shares, the algorithmic trading controversy may cast dark clouds as the matter still needs a closure.
Delhi-based OPG Securities, the brokerage at the centre of the algorithmic trading controversy on the NSE, has moved the Delhi High Court, seeking certain documents from the stock exchange.
National Stock Exchange of India is redrafting its algorithmic trading policy after a forensic audit by Deloitte India found that the exchange‘s systems were prone to manipulation, according to a newsreport on Thursday.
Use of mathematics in trading can range from very basic to extremely complex.
In India algorithmic trading has just caught on, but globally the market has evolved to something called artificial intelligence.
To stop inequitable trading access to the exchanges, markets regulator Sebi today proposed a new framework for super-fast algorithmic trading and co-location facility, including by suggesting 'speed bumps' and separate queues for algo and non-algo trades.
Automated trading impacts markets positively by bringing in greater liquidity, efficient price discovery, efficient order execution due to greater objectivity than human emotion, reduced scope for human errors and most importantly â€“ lesser information leakage.
In an interview with CNBC-TV18, Satish Kumar Dutt of compositedge.com said that volume of traders in algorithmic trading will increase in future as it ensures smooth trade execution.
Sebi tightened the norms of algorithmic trading. Sebi said it had decided to review the algo guidelines following representations made by its Technical Advisory Committee and the new norms will come into effect from May 27
The Centre and stock market regulator Securities and Exchange Board of India (SEBI) were today asked by Delhi High Court to respond to a plea seeking to abolish automated or algorithmic trading at stock exchanges here as the facility was not available to small investors.
The sudden 100-point intra-day drop in the Nifty on Friday once again underscores the need for tighter risk management systems, at both the stock broker as well as stock exchange level. In particular, the incident could lead to increased scrutiny of algorithmic trading, which many players say has led to increased volatility in the market.
From algorithmic trading in Indonesia to the fastest trading engine in the world in Singapore, Asian exchanges are moving to embrace the era of automated trading.