You are here: Home » Markets » News

External auditor to examine NSE's algo trade

Move comes after Sebi wrote to NSE board on September 9

The National Stock Exchange (NSE) will soon appoint an to examine the alleged unfair trading practices on exchange with respect to (HFT) or algorithmic trading as directed by the Securities and Exchange Board of India (Sebi), said a source.

The move follows Sebi's letter to Chairman on September 9 asking the board to probe undue favors extended to some brokers.

is believed to have directed to deposit all revenues generated from such practices into an escrow account.

Confirming the development, an spokesperson said, "We will submit a status report within three months, as asked by Sebi. Besides, we are also finalising a third-party auditor to examine the issues raised."

A probe was launched by Sebi's technical advisory committee, which submitted its report in March. According to this report, "The available data was examined and the report conclusively shows that a broker called OPG Securities logged in consistently to the servers with better hardware specifications." However, the committee said the bourse had not provided adequate details.

The report also noted that had violated norms of fair access and allowed some brokers to benefit. It has highlighted the practice of co-location to give advantage to some brokers to trade faster than others.

A co-location centre is a place where computers owned by HFT firms and proprietary traders are housed on the same premises where an exchange's computers are kept.

Based on the report, had initiated action and sought responses from in April. However, in its response denied the allegations.

Sources said had submitted a status report to and that it had also conducted a departmental inquiry but did not find anything.

The matter came to light when a whistle-blower from Singapore wrote three letters to the finance ministry and highlighting the issues.

image
Business Standard
177 22
Business Standard

External auditor to examine NSE's algo trade

Move comes after Sebi wrote to NSE board on September 9

BS Reporter  |  MUMBAI 

External auditor to examine NSE's algo trade

The National Stock Exchange (NSE) will soon appoint an to examine the alleged unfair trading practices on exchange with respect to (HFT) or algorithmic trading as directed by the Securities and Exchange Board of India (Sebi), said a source.

The move follows Sebi's letter to Chairman on September 9 asking the board to probe undue favors extended to some brokers.



is believed to have directed to deposit all revenues generated from such practices into an escrow account.

Confirming the development, an spokesperson said, "We will submit a status report within three months, as asked by Sebi. Besides, we are also finalising a third-party auditor to examine the issues raised."

A probe was launched by Sebi's technical advisory committee, which submitted its report in March. According to this report, "The available data was examined and the report conclusively shows that a broker called OPG Securities logged in consistently to the servers with better hardware specifications." However, the committee said the bourse had not provided adequate details.

The report also noted that had violated norms of fair access and allowed some brokers to benefit. It has highlighted the practice of co-location to give advantage to some brokers to trade faster than others.

A co-location centre is a place where computers owned by HFT firms and proprietary traders are housed on the same premises where an exchange's computers are kept.

Based on the report, had initiated action and sought responses from in April. However, in its response denied the allegations.

Sources said had submitted a status report to and that it had also conducted a departmental inquiry but did not find anything.

The matter came to light when a whistle-blower from Singapore wrote three letters to the finance ministry and highlighting the issues.

RECOMMENDED FOR YOU

External auditor to examine NSE's algo trade

Move comes after Sebi wrote to NSE board on September 9

Move comes after Sebi wrote to NSE board on September 9 The National Stock Exchange (NSE) will soon appoint an to examine the alleged unfair trading practices on exchange with respect to (HFT) or algorithmic trading as directed by the Securities and Exchange Board of India (Sebi), said a source.

The move follows Sebi's letter to Chairman on September 9 asking the board to probe undue favors extended to some brokers.

is believed to have directed to deposit all revenues generated from such practices into an escrow account.

Confirming the development, an spokesperson said, "We will submit a status report within three months, as asked by Sebi. Besides, we are also finalising a third-party auditor to examine the issues raised."

A probe was launched by Sebi's technical advisory committee, which submitted its report in March. According to this report, "The available data was examined and the report conclusively shows that a broker called OPG Securities logged in consistently to the servers with better hardware specifications." However, the committee said the bourse had not provided adequate details.

The report also noted that had violated norms of fair access and allowed some brokers to benefit. It has highlighted the practice of co-location to give advantage to some brokers to trade faster than others.

A co-location centre is a place where computers owned by HFT firms and proprietary traders are housed on the same premises where an exchange's computers are kept.

Based on the report, had initiated action and sought responses from in April. However, in its response denied the allegations.

Sources said had submitted a status report to and that it had also conducted a departmental inquiry but did not find anything.

The matter came to light when a whistle-blower from Singapore wrote three letters to the finance ministry and highlighting the issues.
image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard