Revision of Order-to-Trade Ratio (OTR) framework

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....ork 1. Para 7.1.2.2, 7.1.2.3, 11.2.14 and 11.2.15 of Chapter 2 of the Master Circular for Stock Exchanges and Clearing Corporations ('Master Circular') dated December 30, 2024, prescribe the framework for placing effective economic disincentive by Stock Exchanges for high order-to-trade ratio (OTR) of Algorithmic orders placed by Trading Members (TMs). 2. Taking into account the representati....

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....ng penalty for high OTR. However, for equity option contracts, orders placed within the range of +/-40% of LTP (premium) or +/-INR 20, whichever is higher, shall be exempted from the framework for imposing penalty for high OTR. 11.2.14.2. OTR framework shall be applicable to the orders placed in the cash segment and the derivative segment, including the orders placed under the liquidity e....