Algorithmic Trading
- Recently, Securities and Exchange Board of India SEBI has raised concerns that unregulated algorithmic trading could lead to market manipulation and pose risks to retail investors.
- Algorithmic trading, also known as automated or black-box trading, involves using computer programs to execute trades based on pre-defined strategies related to timing, price, quantity, or mathematical models.
- In India, algo trading has grown significantly, contributing to nearly 50% of daily trading volume.
- To regulate algo trading, SEBI proposes that all API-based orders be considered algo trades, requiring exchange-approved unique IDs and execution on broker-controlled ....