SEBI UPDATE

Discussion Paper 'Strengthening of the Regulatory framework for Algorithmic Trading & Co-location

SEBI has issued a discussion paper on "Strengthening of the Regulatory framework for Algorithmic Trading and Co-location" on the basis of comments and inputs from all stakeholders, including Investors, Market Infrastructure Institutions (MIIs), and Intermediaries,to explore and address concerns relating to market quality, market integrity and fairness due to increased usage of Algorithmic Trading & Co-location in Indian securities market

SEBI has sought public comments on the proposal till August 31 and final guidelines would be put in place after taking into account views of all the stakeholders.

The move is expected "to discourage latency sensitive strategies as such delays would affect HFT (High Frequency Trade) but would not deter non-algo order flow for which delay in milliseconds is insignificant.