BSE eyes 10 times faster trading speed in next few months

Increasing trading speed to 20 micro seconds will make BSE one among the top three fastest stock exchanges in the world, says BSE CEO

Leading stock exchange BSE expects the speed of trade on its platform to rise to 20 micro seconds in the next few months, from 200 micro seconds currently.

With trading speed touching 20 micro seconds, the BSE would also become the top three fastest stock exchanges in the world, its Managing Director & CEO Ashishkumar Chauhan said.

"BSE's high speed BOLT PLUS system is already the fastest trading platform in the country with a response time of 200 micro seconds for trade executed on it. We will take it to 20 micro seconds in the next few months," Chauhan told PTI.

He is here to attend the global investors' meetings addressed by Finance Minister Arun Jaitley.

Increasing the trading speed to 20 micro seconds will "put the Indian stock market on the global map and the BSE will become one of the top three fastest stock exchanges in the world", Chauhan said.

The high speed or algorithmic trading refers to orders on bourses that are generated using high-frequency and automated execution logic.

In late 2013, the BSE had upgraded its technology platform to BOLT PLUS, which is based on the global giant Deutsche Boerse's trading architecture.

More than 900 brokers with over 1,00,000 branches and millions of retail investors are on the BOLT PLUS system.

Global investors are looking at India for potential growth opportunities and over a period of time, foreign institutional investors have been showing increased interest in the Indian market.

Meanwhile, the Securities and Exchange Board of India (Sebi) is making efforts to increase retail participation in the Indian stock market -- which has given returns of more than 15 per cent compounded rate year after year on a long-term basis.