April 30, 2016

High-speed trading backlash mounts pressure on Sebi

The Securities and Exchange Board of India (Sebi) is coming under increased pressure to improve its oversight of high-speed trading after allegations of unfair access at the nation's biggest equity bourse.

The country's top brokerage associations are among a growing chorus of voices calling for Sebi to take action after an investigation by one of its own advisory panels claimed that there may have been collusion between the National Stock Exchange of India and a high-frequency trading (HFT) firm. The panel is pushing for Sebi to frame more detailed rules on HFT and punish anyone found of wrongdoing, according to a person with direct knowledge of the matter.

Sebi's public silence on the internal report's findings - which were reported by Bloomberg and local media this month - has added to a sense of frustration among many local brokers and investors who say that insufficient regulations on high-frequency trading have made India's markets vulnerable to abuse. While Sebi has issued broad guidelines dating as far back as 2012, critics argue they don't do enough to address how traders should connect to exchanges and how orders should be processed.

Read more at http://www.business-standard.com/article/markets/high-speed-trading-backlash-mounts-pressure-on-sebi-116042901560_1.html

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