Algo trading: NSE lays down norms for retail investors

Boost for Responsible Innovation

- NESIL STANEY

THE NATIONAL STOCK Exchange (NSE) on Tuesday issued compliance norms for participation of retail investors in algorithmic (algo) trading, which combines software and traded securities, based on computer-programmed codes.

These come on the back of Securities and Exchange Board of India's (Sebi) recent guidelines to make retail participation in the algo trading safer.

The guidelines are for all categories of algo, including stockbrokers, algo providers or ones generated by clients themselves.

According to the circular, stockbrokers may provide retail investors with an API (application programming interface) access to their trading systems. Clients must provide the broker with a static IP address. It will be mapped to API keys from which they will be connected to the broker's trading platform.