The National Stock Exchange (NSE) today launched a new service 'NLABS' to test its trading system, including algorithm trading platform. "The exchange is pleased to announce launch of new service 'NLABS'," NSE said in a circular today. "This service provides facility to test the NNF (Non-NEAT Front-end) trading systems including algorithm trading system with replay of historical market data and near live trading test experience," it added. The service has been launched for the exchange's equity, equity derivative and currency derivative segments. The testing would allow a trading member's NNF systems to interact with trading simulators that replays historical market data. It would also allow market participants "to generate data analytic reports based on the historical market data". Trading Members desirous to avail the service are required to register with the exchange. To familiarise the members with the new service, NSE would not levy charges on the facility till November 30. "Charges for the service shall be notified separately," the stock exchange said. NSE provides a trading front-end 'NEAT' for trading.
However, if the member wants to customise the trading front-end according to his requirements, he can do so and can develop a Non-NEAT front-end. Algorithm-based trading refers to orders on bourses that are generated using high-frequency and automated execution logic.