Sebi last month proposed regulating hyper-fast stock trading, amid concerns that investors lacking access to such advanced and expensive systems were being disadvantaged. The proposed rules, though, are forcing many to hit the pause button. Five HFT firms have told Reuters they are holding back new investments given the uncertainties surrounding the proposed regulations. Most notably, China’s securities watchdog has investigated a number of automated trading firms and proposed far-reaching electronic trading restrictions after the market rout of 2015. “Once they see these comments come in, they’ll probably have a fresh look,” said PwC partner Suresh Swamy, who consults for some HFT firms.

Source: Mint September 07, 2016 14:03 UTC