(PTI)
Markets regulator Sebi is considering a proposal to disincentivise algorithmic trading by traders with a ‘congestion charge’ for high volumes along with other restrictions. The proposal which was made at a recent meeting of an expert panel is aimed at addressing concerns that high-frequency or algo traders have unfair access to the trading system of exchange.
Algorithmic trading or ‘algo’ in market parlance refers to orders generated at a super-fast speed by use of advanced mathematical models that involve automated execution of trade. The issue is likely to be discussed at the board meeting of the Securities and Exchange Board of India (Sebi) this month, senior officials said. Under the proposed norms, the regulator plans to impose a higher fee on traders who unnecessarily clog the trading systems with high number of orders, the officials said.
