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Unfair access to brokers? NSE hires Deloitte to probe

A Sebi-appointed committee had earlier found instances of breach of fair access norms and preferential treatment by NSE

Press Trust of India  |  New Delhi 

Representative Image
Representative Image

Leading bourse (NSE) has roped in accounting firm Deloitte to examine the allegations of providing unfair privileged access to some in 'algo' trading.

The move comes after a committee, appointed by the Securities and Exchange Board of India (Sebi), was constituted to investigate the practice of co-location and algo trading.

The committe had subsequently found instances of breach of by the exchange. It also noted that provided unfair to some brokers.

The findings by the expert committee had prompted to write a letter to Chairman Ashok Chawla last month. The regulator had asked to initiate an independent probe of allegations pointed out by the expert committee in its report and suggested measures to be taken.

"has appointed Deloitte to probe allegations of providing unfair privilege access to some for its 'algo' trading," a spokesperson of the exchange said.

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, while co-location involves setting up servers on the exchange premises.

In July, the committee had examined these allegations and asked the exchange to appear before its technical panel to present its case.

The investigation comes at a time when is gearing up for its initial public offering. The exchange has already appointed merchant bankers for the same.

has already floated a consultation paper on algo trade, wherein it has proposed various checks and balances to prevent any misuse. However, the trading community is divided on these proposals.

The regulator has proposed to introduce resting time for orders, random delays and random speed bumps, separate queues for co-location and non co-location orders for strengthening the regulatory framework for algo trading and co-location facility.

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Unfair access to brokers? NSE hires Deloitte to probe

A Sebi-appointed committee had earlier found instances of breach of fair access norms and preferential treatment by NSE

A Sebi-appointed committee had earlier found instances of breach of fair access norms and preferential treatment by NSE
Leading bourse (NSE) has roped in accounting firm Deloitte to examine the allegations of providing unfair privileged access to some in 'algo' trading.

The move comes after a committee, appointed by the Securities and Exchange Board of India (Sebi), was constituted to investigate the practice of co-location and algo trading.

The committe had subsequently found instances of breach of by the exchange. It also noted that provided unfair to some brokers.

The findings by the expert committee had prompted to write a letter to Chairman Ashok Chawla last month. The regulator had asked to initiate an independent probe of allegations pointed out by the expert committee in its report and suggested measures to be taken.

"has appointed Deloitte to probe allegations of providing unfair privilege access to some for its 'algo' trading," a spokesperson of the exchange said.

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, while co-location involves setting up servers on the exchange premises.

In July, the committee had examined these allegations and asked the exchange to appear before its technical panel to present its case.

The investigation comes at a time when is gearing up for its initial public offering. The exchange has already appointed merchant bankers for the same.

has already floated a consultation paper on algo trade, wherein it has proposed various checks and balances to prevent any misuse. However, the trading community is divided on these proposals.

The regulator has proposed to introduce resting time for orders, random delays and random speed bumps, separate queues for co-location and non co-location orders for strengthening the regulatory framework for algo trading and co-location facility.
image
Business Standard
177 22

Unfair access to brokers? NSE hires Deloitte to probe

A Sebi-appointed committee had earlier found instances of breach of fair access norms and preferential treatment by NSE

Leading bourse (NSE) has roped in accounting firm Deloitte to examine the allegations of providing unfair privileged access to some in 'algo' trading.

The move comes after a committee, appointed by the Securities and Exchange Board of India (Sebi), was constituted to investigate the practice of co-location and algo trading.

The committe had subsequently found instances of breach of by the exchange. It also noted that provided unfair to some brokers.

The findings by the expert committee had prompted to write a letter to Chairman Ashok Chawla last month. The regulator had asked to initiate an independent probe of allegations pointed out by the expert committee in its report and suggested measures to be taken.

"has appointed Deloitte to probe allegations of providing unfair privilege access to some for its 'algo' trading," a spokesperson of the exchange said.

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, while co-location involves setting up servers on the exchange premises.

In July, the committee had examined these allegations and asked the exchange to appear before its technical panel to present its case.

The investigation comes at a time when is gearing up for its initial public offering. The exchange has already appointed merchant bankers for the same.

has already floated a consultation paper on algo trade, wherein it has proposed various checks and balances to prevent any misuse. However, the trading community is divided on these proposals.

The regulator has proposed to introduce resting time for orders, random delays and random speed bumps, separate queues for co-location and non co-location orders for strengthening the regulatory framework for algo trading and co-location facility.

image
Business Standard
177 22