3 months, 3 weeks ago

Algo trading coming soon to a terminal near you

Algorithmic trading which has remained the preserve of large institutions could soon be open to India's retail investors as well, with the market regulator proposing a framework with critical roles for brokers and stock exchanges. In a consultation paper floated on Friday, the Securities and Exchange Board of India suggested making algo trading available to retail investors through licensed brokers, who will register clients' algorithms with exchanges, ensure compliance with rules, and watch for irregularities. He also stressed the need to educate retail investors on the risks of algo trading, particularly on the differences between execution and Black Box Algorithms. Retail participation boost Despite these challenges, Srivastava believed the proposed framework would likely increase retail participation in algo trading.

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