Automated stock trading in india
MUMBAI India's "flash boys", or high-frequency traders, are pushing back against the domestic markets regulator and in some cases putting investments in new strategies on hold, saying proposed tighter rules could render their ultra-fast systems redundant. The Securities and Exchange Board of India SEBI last month proposed regulating hyper-fast stock trading, amid concerns that investors lacking access to such advanced and expensive systems were being disadvantaged.
India has been a land of opportunity for HFT players as high transaction costs in some European markets and greater competition in the United States have encouraged international HFT companies to flock to India in recent years.
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Algo, or automated computer-driven trading of which HFT is a subset, accounts for over 40 percent of executed orders in India, above an estimated average of 32 percent across Asian markets in , according to market research firm Aite Group. 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.
SEBI has said it was looking at potential limits on so-called algo traders, including "speed bumps" to randomly delay execution of some orders, and forcing exchanges to take orders from co-located servers and other sources alternatively, removing another advantage enjoyed by HFT platforms.
The deadline for submitting responses to SEBI ended on Aug. SEBI has said it planned to analyze the responses and hold discussions before creating a regulatory framework.
But in a letter sent to SEBI dated Aug. It said they may result in "potentially detrimental impacts to market liquidity, increased risk and increased trading costs for investors which outweigh potential regulatory benefits.
In the discussion paper, SEBI noted that while literature existed showing algo trading helped tighten spreads and boost liquidity, research also showed it may raise costs for non-algo traders and increase the risk of "flash crashes". Regulators in the United States, Europe and elsewhere have moved to crack down on high-speed trading, responding to fears that the practice distorts markets, ups risks and disadvantages retail and institutional investors.
Authorities in Asia-Pacific markets, where HFT is generally less of a factor, have also stepped up scrutiny of algo trading over the past two years, and in some cases introduced curbs to curtail it.
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 The Bombay Stock Exchange BSE Brokers Forum, in a letter to SEBI last week, appealed for more time to deliberate.
The proposals, if implemented, could take a chunk out of the revenues of BSE and the National Stock Exchange, India's biggest bourse, just as both exchanges are gearing up to go public. Some foreign players are also wary of the proposed changes, concerned they could widen spreads and make markets more prone to sudden swings, all at a time when India is increasingly attractive to overseas investors.
Automated Trading System India | symphony
Additional reporting by Michelle Price in Hong Kong, Savio Shetty in Mumbai and John McCrank in New York; Editing by Mike Collett-White. NEW DELHI India on Wednesday allowed banks and post offices to exchange old, big bank notes, which are no longer in circulation, with the Reserve Bank of India RBI in a month, provided these notes were collected by Dec.
NEW DELHI Air India and Jet Airways will start additional flights to Doha from this week to bring back stranded Indian nationals, after some Gulf countries led by Saudi Arabia cut ties with Qatar, a government statement said on Wednesday.
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