TaxTMI 
TaxTMI 
Measures to strengthen Algorithmic Trading and Co-location /Proximity Hosting framework
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....re fair and equitable access to the Co-location/proximity hosting facility offered by stock exchanges. 2. In order to address the concerns relating to algorithmic trading and colocation / proximity hosting facility offered by stock exchanges and to provide a level playing field between Algorithmic/ Co-located trading and manual trading, SEBI issued a discussion paper on August 5, 2016 requesting market participants to provide their views on the efficacy and need to introduce further mechanisms to address the aforementioned concerns. 3. In light of the public comments received and in consultation with Technical Advisory Committee (TAC) of SEBI and Secondary Market Advisory Committee (SMAC) of SEBI, it has been decided to introduce the foll....
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....grity, security and privacy of data, being handled at the facility. 7. Further, in order to have fair competition, stock exchanges are advised to ensure that multiple vendors are permitted for providing Managed Co-location Services at their co-location facility. Measurement of Latency for Co-location and Proximity Hosting 8. Clause 3.9 of SEBI circular CIR/MRD/DP/07/2015 dated May 13, 2015, mandated stock exchanges to publish suitable quarterly reports on their websites on latencies observed at the exchange. 9. Currently, latency is measured by the Stock Exchange as the time taken to complete the round trip from the Core Router (Core Router is the place where both Colo-location orders and Non-colocation orders meet) to the matching engi....
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....lace more orders closer to the last traded price (LTP), the following modification shall be carried out in the existing OTR framework: a. Instead of orders placed within ±1%, orders placed within ±0.75% of the LTP shall be exempted from the framework for imposing penalty for high OTR. b. Orders placed in the cash segment and orders placed under the liquidity enhancement schemes shall also be brought under the OTR framework. Unique Identifier for Algorithms / Tagging of Algorithms 15. Clause 6 (vi) of SEBI circular CIR/MRD/DP09/2012 dated March 30, 2012, prescribed that all algorithmic orders be tagged with a unique identifier provided by the stock exchange in order to establish audit trail. 16. In order to ensure enhance....