Securities and Exchange Board of India’s discussion paper on algorithmic trading leaves much to be desired. To start with, none of the regulator’s myriad proposals to bring checks are backed by data and research. In the absence of this data, imposing a minimum resting time comes across as an unjustified penalty on market participants. Sebi’s proposals on randomising order execution, conducting frequent batch auctions and imposing random speed bumps will be discussed in next week’s column. The regulator has suggested that exchanges disseminate a limited amount of data to all market participants, to ensure a level playing field.

Source: Mint August 22, 2016 15:22 UTC