The Securities & Exchange Board of India (SEBI) is in talks with international experts and regulators over issues related to possible new guidelines for high-frequency trading, Bloomberg News reported.
The Indian market regulator is considering checks on super-fast strategies in an effort to strengthen rules for algorithmic trading, Chairman U.K. Sinha was quoted as saying Thursday.
“There is a race globally to bring down the latency and regulators are struggling to contain the risks,” Sinha said.
“We have to be very careful in taking measures as if there is one disruption it could affect hundreds of people.”
The SEBI chief declined to give a timeframe for any new rules, the report said.
Sinha’s comments came after a SEBI advisory panel called for a full investigation into claims of collusion between the National Stock Exchange of India and a high-frequency trading firm.
There have been suspicions that some NSE officials worked with OPG Securities to give the New Delhi-based trading firm preferential access.
The SEBI panel also called for the probe to examine whether another brokerage benefited from a dedicated fiber-optic line between NSE and BSE, India’s second-biggest bourse.
The regulator will take action on the panel’s findings, Sinha said.
The Association of National Exchanges Members of India and the Brokers Forum, two of India’s largest brokerage associations, have called for a formal investigation into the committee’s findings.
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