Sebi has also taken a number of measures to strengthen algo trading framework, including providing some services for free. Besides, the regulator has taken a number of measures to strengthen algo trading framework, including providing some services for free, Sebi said in a circular. Algo trading includes automated rule-based trading where decision-making is delegated to a computer model, while high frequency trading (HFT) is a type of algo which is latency sensitive and is characterised by high daily portfolio turnover and high order-to-trade ratio (OTR). This is subject to trading members, creating the necessary infrastructure for receiving and processing it. Presently, one specific code is attached to all algo orders to distinguish them from non-algo trades.

Source: Mint April 09, 2018 13:52 UTC