Safer participation of retail investors in algorithmic trading through broker led API controls, empanelment, surveillance, and algo categorisation. The framework requires brokers to act as principals for API-based algo trading, tag API orders with exchange identifiers, empanel and due diligence algo providers, restrict API access through client specific keys and static whitelisted IPs, adopt OAuth and two factor authentication, handle investor grievances, and ensure disclosure of fees and conflict free arrangements. Exchanges must supervise algos with SOPs, surveillance, kill switch capability, empanelment criteria, confidentiality safeguards, data flow rules, and specified turnaround times. Algos are categorized into white box and black box, with black box providers required to register as research analysts and maintain detailed research reports.
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.
Safer participation of retail investors in algorithmic trading through broker led API controls, empanelment, surveillance, and algo categorisation.
The framework requires brokers to act as principals for API-based algo trading, tag API orders with exchange identifiers, empanel and due diligence algo providers, restrict API access through client specific keys and static whitelisted IPs, adopt OAuth and two factor authentication, handle investor grievances, and ensure disclosure of fees and conflict free arrangements. Exchanges must supervise algos with SOPs, surveillance, kill switch capability, empanelment criteria, confidentiality safeguards, data flow rules, and specified turnaround times. Algos are categorized into white box and black box, with black box providers required to register as research analysts and maintain detailed research reports.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.