Sebi tightens algo trade norms
Premium(Abhijit Bhatlekar/Mint )
Exchanges asked to double the penalty if any broker or trading member has a high order-to-trade ratio for trades placed from algorithmic systems
Premium(Abhijit Bhatlekar/Mint )
Mumbai: The Securities and Exchange Board of India, or Sebi, said on Tuesday stock brokers providing algorithmic trading facility shall subject their trading systems to a system audit every six months.
The market regulator also asked the stock exchanges to double the penalty if any broker or trading member has a high order-to-trade ratio for trades placed from algorithmic systems.
If any serious deficiencies or issues of failure are fund, stock exchanges will not allow the stock broker to use the trading software unless such issues are addressed.
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