Algorithmic Trading

TMS Ep268: Rupee's record plunge, diesel cars, markets, algo-trading

What are the implications of Rupee staying beyond 80? Is it the beginning of the end of diesel cars in India? Is the recent selling in markets overdone? What is algorithmic trading? All answers here

What is algorithmic trading?

SEBI recently issued guidelines for stock brokers who provide algorithmic trading services. What exactly is algo trading? Watch our next report to know more

Sebi chairperson Madhabi Puri Buch on Wednesday said any business on the 'black box' model that cannot be audited or validated will not be permitted. She also said since data is a public infrastructure, any attempt by any private party to own them cannot be tolerated. "We are not for or against algo trading as long as there is sufficient transparency and disclosures. Business models cannot rely on a black box which is not open to sunlight.. therefore any claim that cannot be audited and validated cannot be permitted," Buch said addressing the Global Fintech Fest here this morning. The warnings from the markets regulator come amid reports that it may clamp down on algo trading, which in the past has been misused by certain brokers with the connivance of top NSE officials. Earlier this month, Sebi had issued new guidelines for stock brokers providing algorithmic trading services after it was found that certain stock brokers provide algorithmic trading facilities to investors through

Regulator in touch with exchanges, set to accept proposals made in discussion paper

The case dates back to a period between 2009 and 2016 when the exchange engaged with Ajay Shah and Infotech Financial Services

"These platforms are unregulated and thus there is no investor grievance redressal mechanism covering their activities," Sebi said.

The new limit will be effective from April 1, the Securities and Exchange Board of India (Sebi) said in a circular

A cursory look at the algo creators will show that the very purpose of algos is to offer buy/sell recommendations, often marketed by making wild claims

Sebi's proposal to treat all APIs as algo trade is unwarranted

The algo trading system automatically monitors the live stock prices and initiates an order when the given criteria are met

Classifying all API orders as algo could stifle innovation: Industry players

Akshaya Bhargava's fintech firm Bridgeweave covers 4,500 global stocks and 1,500 ETFs in 15 markets. Its AI algorithms do over 800 mn calculations a day, something impossible for a regular investor

With technology, data sciences and automated trading beginning to play a big role, this skill is fast becoming a prerequisite

BSE said the count will commence from the audits conducted for the period ended March 31, 2014

Ajay Shah in his article, "Who is afraid of algorithmic trading" (August 22) has rightly emphasised empirical evidence as the basis for decision-making. It, therefore, behooves him and his ilk to produce empirical evidence that algorithmic trading has furthered the prime purpose of capital market, namely, channelling savings into financial assets.Not unlike the prognosis of Irving Fisher just before the great crash of US markets in 1929 that "stock prices have reached what looks like a permanently high plateau", Shah, in his article, "A crisis? Or a mere recession" (March 19, 2008) judged the 2008 crisis as: "This may well be a recession, but it is not an emerging markets-style crisis." What happened subsequently hardly needs mention.The murky, if not sinister, role played by "neutral academics" in engineering the crisis of 2008 was exposed in the Academy Award-winning documentary, Inside Job. Sophistication for its own sake serves no purpose; on the contrary it is the handmaiden of de