Algorithmic trading risk controls required, with exchanges and brokers mandated to implement order-level checks and monitoring to ensure market integrity. Regulatory guidelines require exchanges and brokers to implement comprehensive risk controls, monitoring and reporting for algorithmic trading: exchanges must ensure system capacity, surveillance upgrades, economic disincentives for high order-to-trade ratios, routing through Indian broker servers, clock synchronization, and the ability to identify and disable dysfunctional algos; brokers must obtain exchange permission, pass conformance tests, implement price, quantity, order-value and cumulative open order value checks, automated execution safeguards, unique order tagging, maintain logs, safeguard algos, and undergo certified system audits.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Algorithmic trading risk controls required, with exchanges and brokers mandated to implement order-level checks and monitoring to ensure market integrity.
Regulatory guidelines require exchanges and brokers to implement comprehensive risk controls, monitoring and reporting for algorithmic trading: exchanges must ensure system capacity, surveillance upgrades, economic disincentives for high order-to-trade ratios, routing through Indian broker servers, clock synchronization, and the ability to identify and disable dysfunctional algos; brokers must obtain exchange permission, pass conformance tests, implement price, quantity, order-value and cumulative open order value checks, automated execution safeguards, unique order tagging, maintain logs, safeguard algos, and undergo certified system audits.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
AI OCR ✕
of 
TaxTMI 
TaxTMI 
