Sebi takes steps to make algorithmic trading cheaper
Algorithm Trading is widely used by institutional investors dealing in large volume shares. It is highly technology-oriented, it also known as automated trading.
The Sebi also tightened the penalty rules by narrowing the range of algorithmic orders to 0.75 percent of the last traded price compared to one percent earlier.
Earlier in 2016, the regulator had proposed potential limits on so-called algorithmic traders, including speed bumps to randomly delay execution of certain orders, and forcing exchanges to take orders from co-located servers and the alternate sources, removing another benefits enjoyed by high frequency trading platforms.
The Sebi on Wednesday also announced a number of steps taken towards improving corporate governance; including enhancing the eligibility criteria for independent directors & mandating additional company disclosures, including additional details on auditing firms.
Algorithmic (Algo) is a trading system which helps making a decision of transactions using advanced mathematical tool. Algorithm Trading is extensively used by institutional investors who deal in large volume shares. The system is highly technology-oriented which also known as automated trading. Apart from profit opportunities for a trader, Algorithmic trading builds market more liquid making trading more systematic
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