Thursday, 2 March 2017

SEBI Plans to Tighten Algo Trading Regulations

SEBI Plans to Tighten(तंग करना) Algo Trading Regulations(नियम)

The Securities and Exchange Board of India (SEBI) has planned to further tighten the regulations for algorithmic trading to minimise instances of misuse of such systems.The market watchdog aims to
minimize the instances of flash crashes (दुर्घटनाओं) that have happened overseas and also in India a few times.
India is one of the very few countries in the world which regulate algorithmic trading popularly called algo trading and have some mechanism for controlling the misuse of algo.
Algorithmic Trading
Algorithmic trading refers to the use of software programmes to execute complex trading strategies at a much faster speed. Flash Crash is an extremely rapid decline (पतन) in the price of one or more commodities or securities, typically caused by automated trading. The speed and interconnectedness can result in the loss and recovery of billions of dollars in just few minutes and seconds.

regulation नियम Definitions of regulation
a rule or directive made and maintained by an authority.
planning regulations
synonyms: rule, ruling, order, directive, act, law, bylaw, statute, edict, canon, pronouncement, dictate, dictum, decree, fiat, command, precept

the action or process of regulating or being regulated.
the regulation of financial markets
synonyms: adjustment, control, management, balancing; supervision, policing, superintendence, monitoring, inspection, control, management, ordering

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