The brokerage firm objected to SEBI's new proposal regarding Algo Trading

-


MUMBAI: Brokerage firms and fintech companies have objected to market regulator SEBI's discussion paper considering all stock trading orders issued through Application Programming Interface (API) as separate trading, saying it could adversely affect the growth of such trading from India.

Algo trading is considered to be an automatic buying-selling system based on algorithms. SEBI has recently said in a discussion paper that it would create a framework for regulating Algo trading by retail investors.

A senior official of a brokerage firm said that monitoring of Algo trading is a need of the hour, but such an attempt could hamper the growth of Sebi Algo trading. He added that if the suggestions made in the SEBI discussion paper were implemented, it would be difficult for brokers to make the API available.

About 70% of the daily trading volume in Indian stock markets is transacted through advanced forms of algo trading. Algo Trading came to India in the year 2006, but then only serious traders used it.

Retail traders have started using Advanced Algo for trading mainly in the last five years. The main purpose of Algo Trading is speed of order execution. The fact that traders use APIs today is a very small part of trading (0.04 per cent of the brokerage business), not approving it would mean that our capital markets would be two steps behind the world in terms of technology.

Brokers say shutting down the API will not solve the problem of unregulated algo trading platforms. They will only shift to third party automation tools using brokers' APIs that are not under the control of brokers. The only way to solve the problem is to regulate these algo platforms and bring them under the Registered Investment Advisor (RIA) framework.

Comments

  1. Profit4xDecember 15, 2021 at 2:27 AM

    Thank you for sharing such detailed Blog. I am learning a lot from you. Visit my website to get best Information About Forex Trading for beginners

    Forex Trading for beginners

    ReplyDelete
  2. Expenses ReceiptJanuary 9, 2022 at 2:48 AM


    Hi dear,

    Thank you for this wonderful post. It is very informative and useful. I would like to share something here too.Expenses Receipt: Best Online Receipt Maker / Receipt Generator for custom receipts, choose the simple receipt template and itemized receipt template to make a free custom receipt maker. Make a receipt that looks like original.

    Store Receipt

    ReplyDelete
  3. klever tradeFebruary 12, 2022 at 4:21 AM

    Very nice post. I read your post very carefully and it's wonderfull blog and this topic is also very informative. Thanks...

    Read here - Small Portfolio

    ReplyDelete
  4. cwgmarkets.co.ukOctober 18, 2022 at 4:11 AM

    It was such a good post. Visit Online Stock Broker. Thanks for sharing.

    ReplyDelete
  5. CWG MarketsOctober 18, 2022 at 5:17 AM

    This comment has been removed by the author.

    ReplyDelete

Post a Comment

Popular posts from this blog

Due to the ban, employment and economic activity declined by two to three percent

-
Image
New delhi date. October 7, 2019, Monday A new study has found that employment and economic activity have declined by two to three percent due to the ban. A similar situation has been observed in bank lending. The study found the decline to occur within two months of the notation announced on November 7. This is the first research on demineralization in which data on the effects of districts across India were collected. In addition to the districts, the effect of national level was also studied. Previous studies only examined the national level effect of demonitization. Thus, a full estimate of the overall effect is not known. As a result of the shortage of cash arising out of the blockade, the country's economic activity fell by approximately 8 percent in November-December 2 In the October-December period, bank credit has seen an impact of around two per cent. Cash pulls have impacted demand for a short period. The study found that there was a strong link between money and pro
Read more

Information about soymilk and casein products

-
Image
- Industrial guidance - Dhiru Parekh Soymilk: Soybeans are converted to high-quality protein. So that high quality drinks can be made which can be easily digested. There is no difference between soymilk and cow's milk. So the conservative industries of milk processing are now using this milk to make yogurt and ice cream. Consumers also cannot tell the difference between ice cream made from cow's milk and from soy milk. Also, the production capacity of soy milk can be increased than that of cow's milk. And the price can be cheaper. Soybeans mainly contain two types of enzymes that are inactivated in the soymilk process. Leukoxidase that catalyzes the oxidation of fatty acids. And enzymes like pepsin, trypepsin are included in it. Which helps in digesting protein. Soyamilk powder manufacturing process: This is an electric pre-heater system. which basically allows fluid to flow easily in a stationless tube under low-voltages. which absorbs the energy flowing through the Ja
Read more