Bourses must allow co-location connectivity between exchanges - SEBI

MUMBAI (Reuters) - India's capital markets regulator on Thursday said bourses must allow connectivity between co-location servers of brokers housed in different exchanges.

Amending the rules governing co-location facilities, or servers placed near exchanges to maximise trading speed, the Securities and Exchange Board of India (SEBI) said bourses must 'ensure complete control and jurisdiction' over their co-location facility.

They should also submit a quarterly compliance reporting regarding any outsourcing services, the market regulator said.

The exchanges must offer 'direct connectivity between servers of a stock broker placed in co-location facility of a recognised stock exchange and servers of the same stock broker placed in co-location facility of a different recognised stock exchanges,' SEBI said.

 

It added exchanges will also need to implement these changes within a month.

For statement: http://bit.ly/2gbnTBP

(Reporting by Rafael Nam; Editing by Vyas Mohan)