Majority of F&O trading from co-location for second consecutive year

Co-location may well have a majority share of futures and options (F&O) trading in 2023-24 once again.

It accounted for 50.53 per cent of the National Stock Exchange (NSE) derivatives trading turnover in February, higher than the 50.1 per cent share seen in 2022-23 (FY23).  The share on the BSE was higher though February numbers showed a dip relative to the previous year. Co-location is the practice by institutional investors to locate their servers on the site of the stock exchange, in exchange for a fee, to cut down on latency and trade that much faster. 
 

The location can reduce fractions