Algorithmic Trading - Business Outrank

The Securities and Exchange Board of India has recently issued new regulations for algorithmic trading therefore to enhance the governance of this type of trading. In the new guidelines, the stock exchanges will be allowed to approve algorithmic trading firms and there are clear criteria for their usage. This change is expected to help in avoiding risks and increase in the level of transparency in the algorithmic trading which has recently gained popularity in India among the institutional and retail investors. Algorithmic trading is the process of executing trades through pre-programmed algorithms. This allows traders to place orders at frequencies and speeds that are impossible for a human to achieve. Algo trading has been in the Indian markets for a number of years, but the previous rules were not very well thought out thus exposing investors to certain risks. The new framework adopted by SEBI is to ensure that the loopholes that had been identified are closed and the investors are protected as much as possible. In the new rules it was stated that only empaneled algorithmic trading providers with the exchanges can be on-boarded by brokers to ensure that the algorithms used are standardized. Furthermore, the exchanges are to approve the brokers before using the algorithms, and also to watch for any prohibited activities and deal with investor complaints. Another important aspect of the new rules is the restriction of open APIs. It is not possible for investors to use open APIs to link to the trading systems and execute trades. Instead, access will only be granted through unique vendor clients, which will help in tracing and identifying the different trading activities that are to be done. Those who develop their own algorithms must also register with the exchange and there are rules on the number of order per second. These regulations are to take effect from the 1st of August, 2025, once the Industry Standards Forum of Brokers has finalized its standards by the 1st of April, 2025. This is in line with SEBI’s efforts to improve on the security and effectiveness of India’s financial markets.

What's Hot

SEBI Unveils Stricter Rules for Algorithmic Trading in India 2025

NPS Hack: Save Tax Beyond ₹12 Lakh Exemption Limit – Here’s How

Tata Motors Proudly Welcomes Shantanu Naidu in a Key Role, Carrying Forward Ratan Tata’s Legendary Legacy

Effective Yoga Poses to Naturally Manage Blood Sugar Levels

Health Budgets Of States Fall Below 8%, Missing National Health Policy Targets

The Connection Between Diet and Organic Skincare – Foods for Healthy Skin

The Rise of Organic Skincare – Embracing Nature’s Love for Your Skin!

Jana Nayagan: Vijay Wields a Whip in Stunning 2nd Look Poster, Thrilling Fans

Assam’s Jatin Goswami Honored with Padma Bhushan for Sattriya Legacy

Vijay Vikram Singh Urgently Appeals for Respect Amidst Intense Backlash from Rajat Dalal Fans: ‘I Am Not Bigg Boss

‘Extremely Egoistic’ Film Star Faking Humility: Shark Tank India’s Aman Gupta

Hindon: Incredible Air India Express Flights to Start from March 1 with Low Fares

Indian government approves Singapore Airlines bid to merge Vistara and Air India

Independence Day and Raksha Bandhan Fuel Airbnb Travel Rush

Hindon: Incredible Air India Express Flights to Start from March 1 with Low Fares

Bachchan’s ₹83 Crore Duplex Sale Sparks Unbelievable Investment Growth

Kartik Aaryan’s Fitness Secret: How He Achieved a Stunning Transformation

Effective Yoga Poses to Naturally Manage Blood Sugar Levels

Browsing: Algorithmic Trading

SEBI Unveils Stricter Rules for Algorithmic Trading in India 2025

SEBI Unveils Stricter Rules for Algorithmic Trading in India 2025

NPS Hack: Save Tax Beyond ₹12 Lakh Exemption Limit – Here’s How

Tata Motors Proudly Welcomes Shantanu Naidu in a Key Role, Carrying Forward Ratan Tata’s Legendary Legacy

Trump’s Tariffs Could Raise Prices on Everyday Products in the US

Our Picks

SEBI Unveils Stricter Rules for Algorithmic Trading in India 2025

NPS Hack: Save Tax Beyond ₹12 Lakh Exemption Limit – Here’s How

Tata Motors Proudly Welcomes Shantanu Naidu in a Key Role, Carrying Forward Ratan Tata’s Legendary Legacy

Most Popular

SEBI Unveils Stricter Rules for Algorithmic Trading in India 2025

Harvesting Hope: Rahul Gandhi’s Empathy in Action with Farmers before 2024 Elections

Is Modi Afraid? Congress Leader Accuses PM of Targeting Rahul Gandhi

Subscribe to Updates

What's Hot

Browsing: Algorithmic Trading