Forex Trading India - Bevisad FX Trading Robot Software. Namesta Sat Sri Akal Salaam och Hi. Introducing TBFX till Indien TBFX är en M arket ledare i Forex Trading Systems. TBFX har varit i spetsen för Trading Robot Systems under det senaste decenniet vårt mål var Att skapa ett intelligent robotsystem för att utföra handel med klinisk precision och för att optimera varje enskild handel. Vår framgång på företagsnivå är testament till denna prestation och vårt system är nu tillgängligt för privatkunder. För första gången finns vår programvara tillgänglig I Indien. TBFX Robot - Självlärande auto anpassning software. Our Auto Trading programvara är baserad på sofistikerade algoritmer och handelsstrategier som har skapats under flera år men är självstudier, det anpassar sig ständigt till de förändrade marknadsförhållandena eftersom det omkalibrerar varje dag Det betyder att det aldrig blir föråldrat, blir bara mer precist. 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Exempel EURUSD rör sig upp till R1 pris och saktar runt detta pris går in i kortförsäljningslås i handel med liten vinst och riktar sig sedan mot den dagliga vridningen. Fördelar och nackdelar med automatiserade handelssystem. Trader och investerare kan göra exakta tillträdesavgångs - och penninghanteringsregler till automatiserade handelssystem som tillåter datorer att utföra och övervaka handlarna En av de största attraktionerna inom strateginautomatisering är att det kan ta några av känslorna ur handel eftersom handlar automatiskt Placeras när vissa kriterier är uppfyllda. Denna artikel kommer att introducera läsare till och förklara några av fördelarna och nackdelarna, liksom realiteterna hos automatiserade handelssystem. För relaterad läsning, se The Power of Program Trades. What är ett automatiserat handelssystem Automatiserade handelssystem, även kallat mekaniska handelssystem, algoritmisk handel med automatiserad handel eller systemhandel, tillåter näringsidkare att fastställa specifika regler för både handelsposter och utgångar som, när de är programmerade, kan vara Automatiskt utförs via en dator. Handelsregistrerings - och utträdesreglerna kan baseras på enkla förhållanden som ett glidande medelvärdeövergång eller kan vara komplicerade strategier som kräver en övergripande förståelse för det programmeringsspråk som är specifikt för användarens handelsplattform eller kompetensen hos en Kvalificerad programmerare Automatiserade handelssystem kräver vanligtvis användningen av programvara som är kopplad till en direktåtkomstmäklare och specifika regler måste skrivas på den plattformens proprietära språk. TradeStation-plattformen använder till exempel EasyLanguage-programmeringsspråket NinjaTrader-plattformen på Å andra sidan, använder NinjaScript programmeringsspråk Figur 1 visar en e Exempel på en automatiserad strategi som utlöste tre affärer under en handelssession För relaterad läsning, se Global Trade and the Currency Market. Figur 1 Ett fem-minuters diagram av ES-kontraktet med en automatiserad strategi. Vissa handelsplattformar har strategibyggande guider som Tillåta användare att göra val från en lista med allmänt tillgängliga tekniska indikatorer för att bygga en uppsättning regler som sedan kan handlas automatiskt. Användaren kan till exempel fastställa att en lång handel kommer att matas in när 50-dagars glidande medelvärde passerar över 200-dagars glidande medelvärde på ett femminutersdiagram över ett visst handelsinstrument Användare kan också mata in typen av ordermarknad eller gräns, till exempel och när handeln kommer att utlösas till exempel vid stängning av baren eller öppen för Nästa stapel eller använd standardinmatningarna för plattformen Många handlare väljer dock att programmera egna anpassade indikatorer och strategier eller arbeta nära med en programmerare för att utveckla systemet. Medan denna typ Ically kräver mer ansträngning än att använda plattformens guiden, det ger en mycket större grad av flexibilitet och resultaten kan vara mer givande Tyvärr finns det ingen perfekt investeringsstrategi som garanterar framgång. Mer information finns i Använda tekniska indikatorer för att utveckla handelsstrategier. När reglerna har upprättats kan datorn övervaka marknaderna för att hitta köp - eller säljmöjligheter utifrån handelsstrategins specifikationer. Beroende på de specifika reglerna, så snart som en handel är införd, kommer eventuella order för skyddstoppförluster att stoppa stopp och vinstmål Kommer automatiskt att genereras På snabbt växande marknader kan denna momentan orderingång betyda skillnaden mellan en liten förlust och en katastrofal förlust i händelse av att handeln rör sig mot näringsidkaren. Tillägg av automatiserade handelssystem Det finns en lång lista över fördelar med att ha en Dator övervaka marknaderna för handelsmöjligheter och genomföra affärer, inklusive. Minimize Emotions Automated t Rading-system minimerar känslor under handelsprocessen Genom att hålla känslor i koll på marknaden har handlarna vanligtvis en lättare tid att hålla sig till planen. Eftersom handelsorderna utförs automatiskt när handelsreglerna är uppfyllda, kommer handlare inte att kunna tveka eller ifrågasätta handeln I Förutom att hjälpa handlare som är rädda för att dra avtryckaren kan automatiserad handel dämpa dem som är känsliga för att överraska att köpa och sälja vid varje uppfattad möjlighet. Att kunna Backtest Backtesting tillämpar handelsregler på historiska marknadsdata för att bestämma lönsamheten hos idén. Ett system för automatiserad handel måste alla regler vara absoluta utan att det finns utrymme för tolkning. Datorn kan inte göra gissningar. Det måste höras exakt vad man ska göra. Traders kan ta dessa exakta regler och testa dem på historiska data innan de riskerar pengar i Live trading Noggrann backtesting gör det möjligt för handlare att utvärdera och finjustera en handelsidee och att bestämma systemets förväntningar Y det genomsnittliga belopp som en näringsidkare kan förvänta sig att vinna eller förlora per riskenhet Vi erbjuder några tips om denna process som kan hjälpa till att avhjälpa dina nuvarande handelsstrategier. Mer information finns i Backtesting. Tolkning av förflutna. Spara disciplin Eftersom handelsreglerna är etablerade och Utförandet av handel sker automatiskt, disciplinen bevaras även i volatila marknader. Dissiplin går ofta förlorad på grund av känslomässiga faktorer som rädsla för förlust eller önskan att eke ut lite mer vinst från en handel. Automatiserad handel hjälper till att säkerställa att disciplinen upprätthålls Eftersom handelsplanen kommer att följas exakt. Pilotfel minimeras också, och en order att köpa 100 aktier kommer inte att vara felaktigt inmatad som en order att sälja 1.000 shares. Achieve Consistency En av de största utmaningarna i handel är att planera Handla och handla planen Även om en handelsplan har potential att vara lönsam, handlar näringsidkare som ignorerar reglerna alla förväntningar som systemet skulle ha haft Det finns ingen sådan sak som en handelsplan som vinner 100 av tiden förluster är en del av spelet Men förluster kan vara psykologiskt traumatiserande, så en näringsidkare som har två eller tre förlorande affärer i rad kan besluta att hoppa över nästa handel Om Denna nästa handel skulle ha varit en vinnare, näringsidkaren har redan förstört någon förväntan som systemet hade Automatiserade handelssystem tillåter handlare att uppnå konsekvens genom att handla planen Det är omöjligt att undvika katastrof utan handelsregler För mer, se 10 steg för att bygga en vinnande Trading Plan. Improved Order Entry Speed Eftersom datorer svarar omedelbart på förändrade marknadsförhållanden kan automatiserade system generera order så snart som handelskriterier är uppfyllda Att komma in eller ut av handel några sekunder tidigare kan göra stor skillnad i handelens s Resultat Så snart en position är upptagen genereras alla andra order automatiskt, inklusive skyddsstoppförluster och resultatmål Marknaderna kan röra sig snabbt och det är demoraliserande till Ha en handel når vinstmålet eller blås förbi en stoppförlustnivå innan beställningarna kan till och med anges Ett automatiserat handelssystem förhindrar att detta händer. Diversifiera handel Automatiserade handelssystem tillåter användaren att handla flera konton eller olika strategier samtidigt. Detta har Potentialen att sprida risk över olika instrument samtidigt som man skapar en häck mot att förlora positioner. Vad skulle vara otroligt utmanande för en människa att åstadkomma utförs effektivt av en dator på ett millisekunder. Datorn kan skanna efter handelsmöjligheter på en rad marknader , Generera order och övervaka affärer. Nackdelar och realiteter hos automatiserade handelssystem Automatiserade handelssystem präglar många fördelar, men det finns vissa nedgångar och realties som handelsmän borde vara medvetna om. Mekaniska misslyckanden Teorin bakom automatiserad handel gör det verkar enkelt att ställa in Programvara, programmera reglerna och se det handla i verkligheten, dock automatiserad handel i En sofistikerad handelsmetod, men inte oupplöslig Beroende på handelsplattformen kunde en handelsorder vara bosatt på en dator och inte en server. Det betyder att om en Internet-anslutning förloras kan en order inte skickas till marknaden. Det skulle kunna Också vara en avvikelse mellan de teoretiska verksamheterna som genereras av strategin och orderingångsplattformskomponenten som gör dem till verkliga affärer. De flesta handlare bör förvänta sig en inlärningskurva när de använder automatiserade handelssystem och det är generellt en bra idé att börja med små handelsstorlekar Medan processen är raffinerad. Övervakning Även om det vore bra att slå på datorn och lämna dagen, kräver automatiserade handelssystem övervakning. Detta beror på att potentialen för mekaniska fel, till exempel anslutningsproblem, strömförluster eller datorkrascher, Och systemkvaliteter Det är möjligt för ett automatiserat handelssystem att uppleva anomalier som kan leda till errantorder, missade order eller dubbla order Om systemet övervakas kan dessa händelser identifieras och lösas snabbt. Över optimering Även om de inte är specifika för automatiserade handelssystem, kan handlare som använder backtestingsteknik skapa system som ser bra ut på papper och utför fruktansvärt på en levande marknad. Överoptimering hänvisar till Till överdriven kurvkoppling som skapar en handelsplan som är opålitlig vid direkt handel Det är exempelvis möjligt att anpassa en strategi för att uppnå exceptionella resultat på de historiska uppgifter som den testades på. Handlare antar ibland felaktigt att en handelsplan ska ha Nära 100 lönsamma affärer eller borde aldrig uppleva en drawdown för att vara en genomförbar plan Som sådan kan parametrar anpassas för att skapa en nästan perfekt plan som helt misslyckas så snart den tillämpas på en levande marknad. Denna överoptimering skapar system som ser ut Bra på papper bara För mer, se Backtesting and Forward Testing Betydelsen av korrelation. Serverbaserade automationshandlare har möjlighet att Driva sina automatiserade handelssystem genom en servernbaserad handelsplattform som Strategy Runner. Dessa plattformar erbjuder ofta kommersiella strategier till försäljning, en trollkarl så att handlare kan designa sina egna system eller förmåga att vara värd för befintliga system på den servernbaserade plattformen. Det automatiserade handelssystemet kan skanna, exekvera och övervaka handlar med alla order som finns på deras server, vilket resulterar i potentiellt snabbare och mer tillförlitliga orderingångar. Slutsats Även om det är en fördel för olika faktorer, bör automatiserade handelssystem inte betraktas som en Ersättning för noggrant genomförd handel Mekaniska fel kan hända och som sådana kräver systemövervakning Serverbaserade plattformar kan ge en lösning för näringsidkare som vill minimera riskerna för mekaniska fel. För relaterad läsning, se Dag Trading Strategies For Beginners. The maximum Mängden pengar som Förenta staterna kan låna Skuldtaket skapades enligt Second Liberty Bond Act. The Ränta vid vilken ett förvaltningsinstitut lånar medel som förvaras i Federal Reserve till ett annat förvaringsinstitut.1 En statistisk åtgärd av spridningen av avkastningen för ett visst värdepapper eller marknadsindex Volatilitet kan antingen mätas. En akt som amerikanska kongressen antog 1933 som Banklagen, som förbjöd kommersiella banker att delta i investeringen. Nonfarm lön hänvisar till något jobb utanför gårdar, privata hushåll och nonprofit sektorn Den amerikanska presidiet för arbete. Valutakortet eller valutasymbolen för den indiska rupien INR, valutan Av Indien Rupén består av 1.MT4 Robo plugin lanseras ring 9142227173 för detaljer. Hemligheten bakom en framgångsrik handel är ett bra riskavkastningsförhållande Om du ignorerar det här kommer du säkert att förlora det. Det har blivit omtänkt, vilket bra diagram eller handelsstrategi du använder. De flesta av kartleverantörerna och tipsleverantörerna ignorerar RRR Resultat ja du vet det. Emotion är den största fienden av handel. Använd Auto Trading-programvaran och se skillnaden. Vad är Robotic Trading System. Robotic trading system kallas även algo trading, automatisk handel, algoritmisk handel eller automatisk handel exekutör, tillåta näringsidkare att gå in och gå ut till handeln Utan mänskligt ingripande baserat på enkla eller komplexa förhållanden. De flesta av de robotiska handelssystemen krävde en kartläggningsprogramvara med realtidsdata, Trade executor plugin och mäklare trading terminal. Allt du behöver göra är att aktivera en strategi i din kartläggningsprogramvara och köra robothandeln plugin den Kommer att löpa tills du avaktiverar det Du kan övervaka din prestation när som helst och göra förändringar i realtid efter behov. Det första i robothandel är att skapa en handelsstrategi. Strategin kan flytta genomsnittlig crossover, pivotnivåbrytning, öppningsintervallbrytning ORB eller Oscillatorrelaterade strategier, t. ex. om din strategi är 20-5 flytta genomsnittlig crossover när 5 period glidande medelvärde överstiger 20 period Genomsnittet i uppåtriktad riktning kommer ett köpförhållande att inträffa och robothandelsprogrammet kommer att placera en köporder till din handelsterminal. Baserat på din exitstrategi kommer det att bokföra vinst eller utträde när stoppförlust träffar. Till exempel om ditt köppris är 7700 mål är 7750 Och sluta förlusten är 7680 efter att köpet har genomförts, kommer robo-handlaren att övervaka diagrammet för 7750 eller 7680 för att gå från den långa positionen. För att göra komplicerad handelsstrategi borde du ha goda kunskaper om teknisk analys och programmering, eller du kan prenumerera på en expert . 95 Traders förlorar sin kapital på grund av känslomässig handel. Använd Robo Trader för att undvika det. REAL ROBO TRADER. Den ultimata programvaran för automatisk handel. Riktigt och pappershandelstillstånd. T rade med obegränsad scrip. Control-omkopplare endast för långa, korta korta eller långa korta. Part kvantitet vinst bokning läge. Target 1 och Target 2 vinst bokning options. Level baserad handel för pivot, Gann eller Fibonacci handlare. Xsignal-YScrip Trading första gången i India. Trailing sluta loss. trailing sluta förlust på mål 1 hit. Stop förlust Inträde på Mål 1.Versidig på stop loss. Set aktiv daglig vinst förlust. skript wised risk management. Trade anmälan av ljud eller email. VPS Virtual Private Server anläggning på begäran. Multi-User robo på efterfrågan för mäklare sub-mäklare. Lämplig för alla Amibroker AFL. Excel-baserade strategiska executer. MultyScript-korg som handlar New. Option-strategiautomatisering Första gången i Indien. Längsta månadsabonnemang beredda våra robo med andra och besluta sedan om en enkel robothandel AFL. Det är väldigt enkel robotstrategi. För att skapa komplex strategier vänligen kontakta eller ring till 9142227173.Plot C, Stäng, ParamColor Färg, colorDefault, styleNoTitle ParamStyle Style GetPriceStyle. PlotShapes IIf Köp, shapeUpArrow, shapeNone, colorBlue, 0, L, Offset -45.PlotShapes IIf Short, shapeDownArrow, ShapeNone, colorRed, 0, H, Offset -45.PlotShapes IIf Täcka, shapeSmallCircle, shapeNone, colorBlue, 0, L, Offset -35.PlotShapes IIf Sälj, shapeSmallCircle, shapeNone, colorRed, 0, H, Offset 35.copy och klistra in Ovannämnda kod till amibroker tillsammans med robotic plug och test it. What är fördelen med robotic trading. It s minska dina känslor Emotions har en viktig roll i vår handelssucces, speciellt i daghandel Det är ett perfekt alternativ för att kontrollera känslorna. Det s hindrar över handel De flesta av de handlare har denna fråga när marknaden är mycket volatil, kommer handelsmän att fresta till över handel och det kan sluta med stor förlust. Att behålla disciplin Det är en annan fiende från näringsidkaren sen inresa, ändra stopp förlusten , wa Det gäller mer vinst etc. Importerar handelshastighet Efter att ha uppvisat köpssignalen, normalt inom 3 sekunder, kommer order att placeras i din terminal Men manuellt kan det ta 10 till 30 sekunder. Utanför någon likvida marknad Ja, det är lämpligt för aktiehandel, Futures Options trading, råvaruhandel och valutahandel Baskethandel Baskethandel är en stor sannolikhetsstrategi, speciellt inom intradag Men det är väldigt svårt att genomföra manuellt Robo-handel är ett perfekt val för baskethandlare Konsekvent resultat Det är en annan fördel, vilket är mycket Svårt att uppnå i manuell handel. Vad är algoritmisk handel eller Algo trading. This är ett nytt modell trading system som utnyttjar högt avancerad matematisk formel för att generera handelsbesluten i aktie - och derivatmarknader. Normalt algo trading eller robothandel används av institutionella handlare på grund Till den tunga volymen handel men nu även små handlare kan också använda robot trading programvara för att undvika emotionell handel Robot handel kommer att hjälpa handelsmän att följa handelsregler och disciplin. Vad är Robotic Trading-programvara eller Automated Trading Software. Det är ett datorprogram som automatiskt kommer att utföra handeln till din mäklare terminal baserat på den förhandlade handelsstrategin. A helt Automatiserat handelssystem utan mänskligt ingripande Handlar på alla signaler och spårar flera scrips samtidigt. Automatisk avgång på Mål och stoppförlust Det ideala sättet att undvika emotionell handel. Call-09142227173, 09142227174 för gratis Demo. Yahoo messenger id realsenseindia. REAL ROBO TRADER Är ett gränssnitt mellan Amibroker och NOW NEST ODIN ANGEL DIET Trading-plattformen. När en köp, sälj eller kort, täcker signalerna i kartplattformen skickas signalen direkt till Now Nest-terminalen. Enligt SEBI-riktlinjerna måste användaren övervaka Och godkänna beställningen innan du skickar till utbytet. Platform Amibroker med strategi. En köporder utlösad i strategin. Steg 2 REAL ROBO TRADER. Steg 3 Nu Nest ODIN ANGEL DIET Terminal. Enkelt att använda gränssnitt med drag-och-släpp-operationer. Nollprogrammeringskunskap krävs för att kunna använda denna handelsplugin. Kan tillämpas på redan levande handelssystem utan att skriva redigering av någon kod. Grundläggande Robo Trade Software-inställningar. Välj Scrip Parameters. AT Hur passar XP på marknaden. BT XP är den största oberoende mäklaren i Brasilien, vi är inte bifogade Till några banker År 2015 rankas vi tredje i volymer i aktier och optioner, och andra i antal kontrakt i terminskontrakt. Vi har en mäklarehandel i USA, XP Securities, där två kontor New York är fokuserat På nord-sydflödet - så utländska kunder som handlar LatAm - och Miami-kontoret är motsatta - brasilianska investerare handlar på amerikanska och europeiska marknader. Vi handlar aktier, optioner och terminer Vi har också skrivbord för räntebärande lån, säkerhetslån, råvaror och vi Vi är också marknadsaktörer Vi erbjuder alla tjänster de institutionella och detaljistkunderna behöver. Vi har ett elektroniskt handelsdisk med två huvudfokus Anslutningar och OMS-integreringar, handelsplattformar, colocation och alla högfrekventa handlare Specifika krav Även algo trading strategier som utvecklas internt av XP Dessa utförande algos erbjuds till våra kunder och används av våra handelsdiskar. AT BVMF var varmt välkomna HFT Hur har det fungerat. BT De gjorde många förbättringar på sin teknik, i Handel och efterhandelsmiljö, tillsammans med nya policyer för HFT-rabatter. Deras partnerskap med CME tog med den nya matchande motorn PUMA och ny marknadsdata skapades. Unified Market Data Feed Integreringen av clearing är ett viktigt projekt på efterhandelsaspekten. Nifty January Futures Dump 5, lämnar spelarna gissa om det är ett resultat en algoritmisk handel. NYHET DELHI BSE har tweaked BMC-baserna för basminimums kapital för mäklare, ett drag som säkerställer att insättningarna bibehålls med utbytet och inte med Clearingföretaget. Minimumskassan BMC är den insättning som bibehålls av medlemmen av en börs mot vilken ingen exponering för handel är tillåten. Det är Avsedda för att möta händelser i något segment av utbytet och motsvarar de risker som mäklaren får medföra till systemet. Alla insättningar mot BMC kommer att krävas för att bibehållas med utbyte, sade BSE i en cirkulär. För närvarande blockeras BMC från collaterals som upprätthålls med BSE s clearingbolag, ICCL, Indian Clearing Corporation Limited ICCL. Exchange BSE, med ICCL, har påbörjat processen att segregera och ta över säkerheten mot BMC från de collaterals som upprätthålls med ICCL. Det läggs till i den inledande fasen blir den likvärdiga likvärdiga komponenten av BMC-säkerheten i möjligaste mån Segregeras från säkerheter som hålls kvar med ICCL och hålls separat med utbytet. En ny brist på BMC-säkerheter som tas över genom utbytet skulle blockeras från säkerheterna hos handelsmedlem som upprätthålls med ICCL. BSE sade att handelsmedlemmar skulle vara uppskattade på collaterals Som har tagits över från ICCL mot BMC. Brokers har blivit ombedda att vid tidpunkten för förnyelse av fasta inlåning FD och banker garantera BGs som ställs som säkerhet till clearingbolaget deponeras sådana belopp i utsträckning av underskottet hos utbyta. Handelsmedlemmar, vars brist i BMC är blockerade från de säkerheter som innehas av ICCL, ska vid tidpunkten för förnyelsen av sina bankgarantier, fasta inlåning med BGs FDs med ICCL eller deponera ytterligare collaterals med ICCL, att FDs BGs i den omfattningen av sådana Bristen är drabbad av BSE och deponeras i utbytet, sade BSE. Sådana handelsmedlemmar kan också frivilligt deponera FD: s BG med BSE mot BMC och i så mån kommer BMC inte att blockeras vid ICCL. Det läggs till enligt normer bör börsmäklare eller handelsmedlemmar upprätthålla en lägsta kapital på Rs 10 lakh om Handel med värdepapper sker genom egna pengar i stället för kund s utan att använda Algo trade. In 2013 har kapitalmarknadsregulatorn Sebi ökat basminimumkapitalet BMC-insättning för börsmäklare upp till Rs 50 lakh, från högst Rs 10 lakh Tidigare, särskilt de som arbetar med algoritmisk handel algo, för att mildra riskerna på marknaden. MUMBAI Var det ett tjockfingerfel eller en algoritmisk handel Det var frågan om att mäklare frågade sig efter att de fina futuresna föll och sedan dramatiskt återhämtade sig i tidiga affärer på tisdag. Vid omkring 9 15:00 öppnade de Nifty terminerna för handel vid 8422, men Föll till 8000 vid omkring 9 55 och återhämtade sig snabbt mer än 100 poäng. En krasch i Nifty-futures i tidiga affärer resulterade i margintryck på de som handlade med en stoppförlust. Nifty futures i januari kasta 15 40 lakhkontrakt i öppen ränta På tisdag Det ser mest ut som ett felaktigt tjockt finger mot mig, berättade en derivatanalytiker med en utländsk mäklare på Reuters. Den 5 oktober 2012 hade Nifty-indexet kraschat 920 poäng där en näringsidkare med Mumbai-baserad mäklare Emkay Global sägs ha slagit Januari futures dunk 5, lämnar spelarna gissa om det är ett resultat en algoritmisk handel. Att strama normerna för algoritmisk handel, Securities and Exchange Board of India SEBI, gjorde tisdagen Det är obligatoriskt för användarna att få sina system granskade var sjätte månad och ökade påföljder för utlönade börsmäklare. Algoritmisk handel eller algo i marknadsförlängning avser order som genereras i superhastig hastighet med hjälp av avancerade matematiska modeller som involverar automatiserat utförande av Handel. Den används mest av stora institutionella investerare. Det har väckt oro för att algo exponerar små investerare och marknaden i sig för eventuella systemrisker. SEB: s första utgivna riktlinjer för algohandeln i mars 2012, efter att det upplevde en växande användningsutveckling Av avancerad teknik för handel med finansiella instrument. I ett cirkulär som utfärdades tisdagen sade SEBI att det hade beslutat att granska riktlinjerna för algo efter att ha gjorts av sin tekniska rådgivande kommitté och de nya normerna träder i kraft från och med den 27 maj. Ändrade riktlinjer, börsmäklare och handlare som erbjuder algo-anläggningar skulle behöva utsätta sitt algoritmiska handelssystem att granska var sjätte månad så att t O säkerställa att kraven enligt Sebi och börserna uppfylls. Sådana revisioner måste genomföras av en systemrevisor med relevanta certifieringar. Sibi har också tillåtit börserna att vidta lämpliga påföljder om fondförvaltaren eller handelsmedlemen misslyckats Att vidta tillfredsställande korrigerande åtgärder inom en tidsperiod som anges av bourses. The regulator har också bett bourses att regelbundet granska sina övervakningsarrangemang för att bättre upptäcka och undersöka marknadsmanipulation och marknadsstörningar. Credit Suisse lanserar algoritmisk handel i Indien. 22 juni 2009, 10 25:00 IST. NEW DELHI Credit Suisse s Advanced Execution Services AES-enheten har lanserat algoritmisk handel i indiska aktier Med dessa Credit Suisse kunder kan nu använda ett omfattande utbud av AES-algoritmiska handelsstrategier för indiska aktier, att kunna handla Effektivare och uppnå bästa genomförandet. Sedan AES-gruppen bildades 2001 har banken banbrytande ny teknik och tagit den så många marknader som möjligt. I Asien och Stillahavsområdet blev Credit Suisse AES den första utländska mäklaren för att starta direktmarknadsåtkomst DMA I Malaysia i januari 2008 och följde upp detta genom att bli den första utländska mäklaren att erbjuda DMA på den indonesiska marknaden i augusti i augusti. Credit Suisse AES var också bland de första utländska mäklare som erbjöd DMA i Indien i september 2008, sa företaget. Sofistikerade likviditetssökande algoritmer hjälper till att leverera bättre genomförande till kunder som handlar indiska aktier, säger Brook Teeter, chef för AES Sales for Asia Pacific. Investerare kommer att kunna automatisera sina handelsstrategier och anpassa algoritmerna för att tjäna sina mål. Detta kommer att hjälpa dem att minska Signaleringsrisk och marknadseffekter och tillgång till likviditet till det optimala priset. Algoritmer har blivit allt populärare globalt, eftersom investerare har försökt att handla mer effektivt och undvika skarpa spikar i volatiliteten samtidigt som marknadsimplikationer minimeras, särskilt med tanke på de mindre likvida marknadsförhållandena som förekommer på många marknader Under de senaste 18 månaderna. En strategi som syftar till att minimera denna inverkan är SNIPER, en aggressiv och opportunistisk likviditetssökande algoritm som utvecklats av Credit Suisse för att plocka bort likviditet, eftersom den blir tillgänglig till ett målpris. Användningen av SNIPER har mer än fördubblats under det senaste 18 månader, vilket speglar många investerare önskan att uppnå snabb genomförande whil E-marknaderna har varit volatila. AES-sviten av algoritmer innehåller också traditionella algoritmiska strategier som syftar till att dela upp handelsvolymer över tiden och strategier som försöker handla med volymvägd genomsnittlig pris på ett lager. Dessutom erbjuder AES strategier som syftar till att minimera genomförandet Brist - eller skillnaden mellan det pris som en kund beslutar sig för att handla och den faktiska exekveringskostnaden som INLINE och andra likviditetssökande strategier som GUERRILLA. March 31, 2012 ET Bureau. MUMBAI Kapitalmarknadsregulatorn har ställt kontroller och saldon i Plats för högfrekvent handel SEBI har utfärdat detaljerade riktlinjer för att utbyten ska innehålla möjligheter till potentiell systemrisk som orsakas av att mjukvaran använder sofistikerade automatiska program för handel på börser. Regulatorn säger att börserna ska se till att alla algoritmiska order, programdriven automatiserad Orderkörningsmotorer, dirigeras via mäklareservrar i Indien och har ap Propriate risk-control mekanism för att hantera risken som härrör från algoritmiska order och trades. SEBI sade att minimikontrollerna på ordernivå bör innehålla en pris - och kvantitetsgränskontroll. Det pris som anges av ordern ska inte bryta mot de prisband som definieras av utbytet för the security. For securities that do not have price bands, dummy filters shall be brought into effective use to serve as an early warning system to detect sudden surge in prices, SEBI said in a circular posted on its website on Friday. The quantity quoted in the order shall not violate the maximum permissible quantity per order as defined by the exchange for the security. Algorithmic trading or high-frequency trading strategies use mathematical models and powerful computers to order trades at lightning-fast speeds As opposed to manually punched trades, these trades are faster and so stand to benefit from quick change in prices. The regulator said in the interest of orderly trading and market integrity, exchanges should put in place a system to identify dysfunctional algorithm, which could lead to a runaway situation and take suitable measures, including advising the member, to shut down such algorithms and remove any outstanding orders in the system that have emanated from such dysfunctional algorithms SEBI also said in exigency, the stock exchange should be in a position to shut down the broker s terminal. At the outset, the regulatory guidelines deal with systemic risk management and do not seem to infringe on a broker s intellectual property, which is great, said Rajesh Baheti, MD, Crosseas Capital Services a proprietary trader. The regulator said stock brokers desirous of placing orders generated using algorithms should give an undertaking to stock exchanges that they have real-time monitoring systems to identify algorithms that may not behave as expected. Besides, stock brokers should maintain logs of all trading activities to facilitate audit trail The stock broker shall maintain logs of all trading activities to facilitate audit trail, SEBI said. October 27, 2007 AGENCIES. LONDON Recent market turbulence has tested banks technology and is putting a question mark over whether increasingly popular computer-generated algorithmic trading is suited to volatile conditions Algorithmic trading where computers make multiple trades in fractions of a second has soared to make up 30 of equity trad ing volume according to industry analysts AITE group It is also increasing popular in the 3 2 trillion a day in foreign exchange market. EBS, the biggest interbank venue for foreign exchange trading, says algorithmic trading has doubled from around 15 of its volumes at the start of 2006 to 30 now But traders say current volatility is showing the limitations of this form of trading, in equities and forex. Algorithmic trading works by taking historical moves to predict what will happen in the future, said Lee Ferridge, senior proprietary trader at Rabobank. When market moves bear little resemblance to what has happened in the past all types of model will struggle. This certainly appears to be the case for Morgan Stanley who reported a 480 million loss in the third quarter from the bank s in-house equities trading desk that employed computer generated models to drive returns Hedge funds using algo are also likely to have been hit The Hennessee Hedge Fund Index fell 0 96 in August compared with an 10 16 increase for the year as a whole Performance was particularly bad for portfolios employing algorithmic models said Mehraj Mattoo, global head of alternative investment strategies at Commerzbank Corporates and Markets. The losses were caused by sharp moves causing many of the models to trigger sell orders on the same securities at the same time, causing a vicious downward spiral In some cases high degrees of leverage caused further magnification of losses The most aggressive risk takers appear to have tried to avoid this kind of loss by pulling out of algorithmic trading when markets were at their most choppy on August 16 A lot of the high frequency guys like hedge funds and the proprietary trading platforms at banks switched off their engines until the worst of the volatility receded, said a source at a major trading platform When the crunch came, those with the most at stake pulled in their horns and reverted to more traditional means of may have been because the technology was simply not up to the job of dealing with the immense volume of tickets, say bank sources. Banks have had to deal with up to double the number of tickets per day they are used to and this is stretching their technological capabilities, said a head of electronic trading at a major global bank. The sheer volume is testing banks ability to process and settle the trades and to manage risk positions If they are approaching the end of a cycle in technology investment their trading engines will start to creak The big moves in currencies-with the New Zealand dollar losing almost 10 against the yen in the week to August 17, for example-helped push average daily trading volumes for August on Icap s EBS and fixed income platform BrokerTec to 945 billion, up more than 50 on the previous year. Volatile markets are also making the short term strategies that algorithmic programmes employ underperform, analysts reckon The current large daily moves in currencies are meaning that it is the longer term position takers that are those that are making money, said Geoff Kendrick, currency strategist at Westpac Those looking on an intra-day basis are having to step down for the moment. May 17, 2011 Shailesh Menon. MUMBAI An increasing number of broking firms in India are offering algorithmic trading to lure large institutional investors. Most big broking firms have updated their trading software to enable algorithmic trading that allows investors to obtain the best possible price without significantly affecting a stock s price and raising purchasing costs. About 18 of total trades on Indian stock exchanges are done through algorithmic commands This compares with about 60 of the overall trades in Hong Kong and Singapore markets that are done using algorithmic strategies, according to exchange sources. All leading funds use algorithms to increase their trade impact Faster order execution has become important as returns are now generated playing price volatility, said the head of investments of a fund house Algo trading involves use of advanced mathematical models to make transaction decisions in financial markets It helps high-volume investors to place larger orders without disturbing the stock price. Large blocks of shares are usually purchased by dividing the large share block into smaller lots and allowing complex algorithms to decide when the smaller blocks are to be purchased More than 150 broking firms in India have started using algorithms, according to a report from business consultancy firm Celent Of these, 10 15 have proprietary algos for strategy and trade execution exclusivity. Algo trading is becoming more popular among institutional investors adopting option trading strategies This, at some level, resulted in option volumes going up by about 81 last year We offer high-frequency trading to institutional clients selectively, said Rashesh Shah, chairman and chief executive officer, Edelweiss Capital that services about 600 institutional investors. Motilal Oswal, chairman, Motilal Oswal Financial Services said Algorithms bring efficiency to stock trading High-speed trading will be an important offering to institutional clients from the side of top brokers The level of algo trading in equity derivatives, especially index options, is much higher than it is for cash equity. The ease of dealing on a single exchange, namely National Stock Exchange, for equity derivatives, and the lower securities transaction tax on derivatives trading are some of the reasons for this development, the Celent report said Celent expects technology spending levels to go up to 55 million i n 2012 from 45 million in 2011. Algo trading volumes have gone up significantly on Indian bourses However, most of the volume is happening in top-50 stocks, where liquidity is high Option-based strategies are also gaining popularity, said Richard Bentley, industry vicepresident capital markets , Progress Software, a London-based IT company specialising in market technologies Mr Bentley expects algo trading volumes in India to touch 50 in the next five years. October 26, 2010 Apurv Gupta ET Bureau. MUMBAI Algorithmic trading in shares listed on Indian stock exchanges could account for 30 of the overall cash market volumes by 2012, compared with around 20 at present, according to US-based consulting firm Celent, citing liquid stock exchanges, sophisticated technology and connectivity as the enabling factors. Algorithmic trading also commonly known as programmed trading entails the use of a pre-written software code to execute transactions, without manual intervention They are of two types e xecution and situational Execution algorithms minimise the impact cost while executing large orders by spreading them through the day, with price and volume specifications Situational algorithms are more sophisticated and triggered when certain conditions are fulfilled For instance, a complex algorithm could generate a buy order depending on a combination of moves in stock price, index level and currency rate. India represents an excellent opportunity for algorithmic quantitative or systematic traders due to the confluence of several factors a supportive legal and regulatory framework, well-established and liquid stock exchanges, sophisticated technology and connectivity to the exchanges, presence of all major banks and broking firms, abundance of people with relevant knowledge and experience and limited competition in the space, says the Celent report titled, Electronic Trading in Asia-Pacific A Market by Market Update on the Dynamic Region. According to the Celent report algorithmic trading in five of Asia s leading markets Singapore Hong Kong, Japan, Australia and India has seen a sharp rise in the past couple of years. Celent expects that within three years, these markets will have caught up with the European market in terms of volumes of algorithmic trading and high frequency trading HFT For instance, in Singapore, the introduction of ADR trading was accompanied by tax exemptions to encou rage market makers to participate Similarly, there are rebates for options trading in Hong Kong In the case of India, the report says that adoption of new technology has been gradual compared with some of its peers in Asia, and this trend could continue. The tight spreads difference between bid and ask prices , low visible liquidity on the bid and offer and high trade rate require a lot of effort and skill to execute a good trade, Sensex 137 ptssays the report, adding that the imposition of securities transaction tax has reduced the prospects for arbitrageurs and high-frequency traders, and impacted algorithmic trading to some extent. November 29, 2011 PTI. MUMBAI Capital markets regulator Sebi today ruled out a ban on algorithmic trading products, even though it said is worried by the rapid adoption of these tools and called for appropriate risk management systems to be put in place by market players using them. Sebi is not looking at banning these products, Sebi Chairman U K Sinha told reporters on the sidelines of a CII meet on capital markets here, though he added, But we are worried. NEWS The market regulator is slated to conduct a review of its risk management system in the near future and a ban on algorithmic trading products was ap prehended by certain quarters following a technical glitch that resulted in the cancellation of all derivatives deals on the BSE during Muhurat trade on Diwali October 26.Sebi had said it would do a thorough review of the risk management system in algorithmic trading to prevent a repetition of such incidents In this regard, Sinha clarified that stakeholders views will be taken on board. We will consult all the stakeholders before taking a decision Though Sebi is yet to come up with a risk management system for these products, we want all the players to have their own risk management systems in place, Sinha said. Algorithmic trading systems, or high frequency trading systems, use highly advanced mathematical models to make transaction decisions. This highly quantitative trading model employs computerised algorithms to analyse incoming market data and implement proprietary trading strategies wherein large quantities of shares are purchased by dividing them into smaller lots and allowing the complex algorithms to decide when the smaller blocks are to be purchased. Use of these products has been gone up significantly in domestic markets in the last three years. Joining Sinha, BSE Managing Director and Chief Executive Madhu Kannan said when he joined the premier exchange two-and-a-half-years ago, Only 5 per cent trades on the BSE used to take place using algo products, but thi s has now gone up to 25 per cent. Addressing the Association of National Exchange Members of India last week, Sinha had warned that the market regulator would not allow anybody to mess with its system in the backdrop of some members being allegedly involved in manipulation. We have an effective risk management system, but we would not compromise That is why we are ready to review, he had added. May 21, 2013 PTI. MUMBAI Tightening the norms for algorithmic trading, market regulator Sebi today made it mandatory for the users to have their systems audited every six months and increased penalties on errant stock brokers. Algorithmic trading or algo in market parlance refers to orders generated at a super-fast speed by use of advanced mathematical models that involve automated execution of trade It is mostly used by large institutional investors and has raised concerns that algo exposes small investors, and the market itself, to possible systemic risks. Sebi first issued guidelines on algo trades in March 2012, after it witnessed a growing trend of usage of advanced technology for trading in financial instruments In a circular issued today, Sebi said it had decided to review the algo guidelines following representations made by its Technical Advisory Committee and the new norms will come into effect from May 27.As per the amended guidelines, stock brokers and traders offering algo facility would need to subject their algorithmic trading system to audit every six months so as to ensure compliance with the requirements prescribed by Sebi and the stock exchanges. Such audits would need to be undertaken by a system auditor with relevant certifications. Sebi has also allowed the stock exchanges to impose suitable penalties in case of failure of the stock broker or trading member to take satisfactory corrective action within a time-period specified by the bourses. In order to further strengthen surveillance mechanism related to algo trading and prevent market manipulation, stock exchanges are directed to take necessary steps to ensure effective monitoring and surveillance of orders and trades resulting from trading algorithms, Sebi said. The regulator has also asked the bourses to periodically review their surveillance arrangements to better detect and investigate market manipulation and market disruptions. In March last year, Sebi had asked the exchanges to implement a framework of economic disincentives for high daily order-to-trade ratio for orders placed from trading algorithms by prescribing penalties in form of charges to be levied per algo orders at various levels. The penalty rates specified by the stock exchanges have been reviewed and in order to provide sufficient deterrence, stock exchanges are directed to double the existing rates of charges to be levied per algo orders specified in their circulars notices, Sebi said The stock exchanges have also been asked to impose an additional penalty in form of suspension of proprietary trading right of the stock broker trading member for the first trading hour on the next trading day in case a stock broker trading member is penalised for maintaining high daily order-to-trade ratio , if such an entity has been penalised on more than 10 occasions in the previous thirty trading days. Sebi said this step would discourage repetitive instances of high daily order-to-trade ratio Sebi also said that the deficiencies or issues identified during the audit of trading algorithm or software of brokers would need to be reported to the stock exchanges immediately after the completion of such audits. Further, the stock broker and trading members would need to take immediate corrective actions to rectify such issues or deficiencies In case of serious deficiencies or issues or failure to take satisfactory corrective action, the broker or trading member would be barred from using the trading software till the time these issues are rectified and a satisfactory system audit report is submitted to the stock exchange. January 23, 2014 PTI. MUMBAI To address the challenges posed by algorithmic or high frequency trading, market regulator Sebi will organise a two-day conference starting January 27.Algorithmic trading or algo in market parlance refers to orders generated at a super-fast speed by use of advanced mathematical models that involve automated execution of trade, and it is mostly used by large institutional investors. The high frequency trading exposes the market to possible systemic risks. The rise of High frequency trading HFT , a type of algo trading, has raised concerns with regard to its impact on m arket quality, financial stability and regulatory framework. The Securities and Exchange Board of India Sebi is organising its first international research conference from January 27-28 here. The theme of the conference is HFT, Algo Trading and Co-location, according to a statement. During the two-day conference, participants will also discuss issues related to information asymmetry, retailinvestors HFT in developing countries and technology as an enabler to re-level the field. Academicians, market practitioners, regulators from countries such as the US, Spain, Australia, Canada and Japan, among others, would participate at the event. There is a divide in pool of thoughts over positive impact of HFT and associated risks Because of its relative novelty and the uncertainty related to many of the trading strategies being used today, the debate over high frequency trading is of contemporary relevance, Sebi said. As both old and new emerging markets continue to become highly digitised, algo trading strategies will constantly advance, it added. Sebi first issued guidelines on algo trading in March 2012, after it witnessed a growing trend of usage of advanced technology for trading in financial instruments Later in 2013, the regulator tightened the norms related to algo trading. April 11, 2014 Biswajit Baruah ET Bureau. MUMBAI The obscure world of high-frequency trading HFT has come under the spotlight of late after Michael Lewis s latest book Flash Boys A Wall Street Revolt. In India, too, the revelations in the book have caught the attention of critics, authorities and market players, but that is yet to spark a hue and cry as in the US This is because such trades account for just a third of the total trading volumes on Indian bourses against the 60-70 per cent in most developed markets in the US and under algorithmic trading a type of HFT which was launched in India in 2009, witnessed a spurt initi ally, but have remained stagnant of late as the regulator frowns on the influence of such trades on the market In algorithmic trading, a system executes pre-programmed orders based on timing, price, or quantity of the order In most cases, the orders are executed by the computer. As a result, the speed of execution has reduced from milliseconds to microseconds and is expected to move to nanoseconds The big players in the business in India are said to be foreign investment banks such as JP Morgan, Morgan Stanley, Credit Suisse, and Deutsche Bank. Algorithmic trading has not picked up in India as the awareness about this particulate trading platform is not much among market participants At this juncture, only select institutional clients and HNIs are using this platform, Sudip Bandyopadhyay, managing director and CEO at Destimoney Securities, said. The algorithmic trading programme is very successful when there is increased volatility in the markets, as our own brokerage algorithmic software is designed like that, he said Algorithmic trading has opened up faster access to Indian markets for financial institutions across the world However, better algorithms with mathematically proven strategies that consume liquidity and faster systems with very low latency are the need of the day. Critics said it can cause sudden market crashes and easily mask market manipulation or other illegal activity In HFT, the objective is to enter and exit frequently and take advantage of daily and intra-day changes. Typically, HFT does not lead to any delivery positions and all transactions are reversed in the same day In the past few months, foreign institutional investors FIIs have used the algorithmic trading platform for buying shares. Algorithmic trading gives the best price advantage in the market as the system has the speed advantage, said Raghu Kuma r, co-founder at RKSV, a Mumbai-based discount brokerage. September 21, 2014 PTI. NEW DELHI As a liberal tax regime kicks in for overseas investors from next fiscal, the FPIs Foreign Portfolio Investors are expected to expand their activities in Indian markets by using the high-frequency trading technology, experts say. High frequency trading, also known as Algorithmic Trading Algo Trading , refers to the automated execution of trades on the stock markets through pre-programmed software platforms installed on servers The same is becoming popular in India. While presently only a few Foreign Portfolio Investors FPIs have adopted algo-trading, many more a expected to take it up, leading consultancy PwC said. To improve ease of doing business and for better regulatory oversight, the Indian capital markets regulator Sebi created a new FPI category after pooling together different categories of overseas investors such as FIIs, their sub-accounts and Qualified Foreign Investors QFIs. According to P wC, there has been low FPI participation in algo trades so far, mainly because of the ambiguity related to characterisation of their income as business income or capital gains. If their income is treated as business income, FPIs could have been taxable at 40 per cent on a net income basis, PwC Executive Director Suresh Swamy said. Due to high volume of transactions usually carried on by algo-funds, there was a possibility of that their income would be characterised as business income, Swamy added. However, with government announcement in budget 2014-15 that the income arising from transactions conducted by FPIs would be classified as capital gains with effect from April 1, 2015, many more investors are likely to take to algo-trading. This means FPI s long term capital gains earned on transfer of securities on which securities transaction tax is paid will be exempt from tax, Swamy said. While short term capital gains are taxable at 15 per cent, he added. As per Sebi s latest data there are nearly 8,400 registered FPIs in the country The FPIs have poured in a total of USD 204 64 billion so far into the economy and are one of the largest drivers of Indian stock markets. According to the government, necessary amendments to the norms for treating FPI income as capital gains would be made with effect from April 1, 2015.Under the proposed amendments, any security held by FPI which would be treated as capital asset only so that any income arising from transfer of such security by FPI would be in the nature of capital gain There is no tax on long term capital gains while short term capital gains are taxable at the rate of 15 per cent. September 16, 2014 Nishanth Vasudevan ET Bureau. I If the lives of start-up founders are about sweat, blood and tears, no one told the trio at Mumbai-based discount broking firm RKSV. To be honest, we have had a considerably smooth ride, says Raghu Kumar, one of the three promoters, briefly describing in a matter-of-fact tone their two-year journey as entrepreneurs He means it. NEWS Rather, he prefers to let the numbers speak Within two years of starting operations and largely operating in a dull market, RKSV is now clocking daily turnover of Rs 4,000 crore. That s about 1 3 per cent of total turnover of NSE, in a business where even the leaders are at 5-6 per cent For the US-bred trio Raghu, brother Ravi and their friend Shrinivas Viswanath it was a move by the Indian capital market regulator to allow algorithmic trading that encouraged them to dip their toes in Indian waters. And when the Securities and Exchange Board of India allowed the direct market access DMA facility in April 2008, which gives investors direct access to a stock exchange s trading system, they decided to put in both their feet. Prior to 2009, their only connection with India was the occasional vis it to meet relatives DMA was the reason we came to India We saw a lot of opportunities and wanted to explore them, says Raghu, a University of Illinois graduate in actuarial science and finance. The concept of algorithmic, or high frequency, trading was not alien to them Before coming to India, the brothers were active in the US foreign exchange markets between 2006 and 2008.But, in October 2008, they had to wind up after the global financial markets imploded trading opportunities had dried up, liquidity had shrunk and spreads had widened enough By then, however, they made a killing of about 2 million, giving them the self-belief and the capital to explore other business ideas. In 2009, Raghu and Ravi, along with Viswanath, a computer engineer in New York, shifted base to India Although the Indian markets were alien to them, funding a venture was never a problem. Raghu and Ravi spent the first two years trading with their own money, which helped them gauge the pulse of the market here Mea nwhile, they secured a membership to the Bombay Stock Exchange, which had slashed its fees significantly to rope in more members. After making good money in the two years in proprietary trading, they saw stockbroking as a natural progression But to set up shop in India, at the time they did, was a contrarian call. Disappointed by the previous government s tardy attitude towards business and economic policies, business confidence in India had hit its nadir Foreign investors were wary and several nonresident Indians NRIs were returning to countries where they held passports The broking industry was bleeding too While competition in institutional broking business was fierce, retail investors had deserted the markets. But there was still a segment of market participants that was underserved traders, for whom high brokerage costs was making it difficult to make money We realised there were many traders who did not have cheaper options to trade, says Kumar What shocked us was the number of bran ches that retail brokerages had, which is not the case in the US. It did not take too much time for RKSV s business to pick up as its relatively-older rival Zerodha had taken the plunge by then Although there was little that RKSV could do to hold an edge in terms of technology, it managed to attract clients by launching the unlimited trading model , where traders can transact for as many times at a fixed cost. Currently, RKSV has about 20,000 clients They are serviced by about 50 employees from its office in Mumbai s emerging financial services hub, Bandra-Kurla Complex Raghu said the firm is looking to double its client base to about 40,000 in 2014-15 That s not bad for a two-year-old, first-generation firm. STARTED 2012 retail trading. FOUNDERS Raghu Kumar, Ravi Kumar, Shrinivas Viswanath. DAILY TRADING TURNOVER Rs 4,000 crore. REVENUES Not disclosed. April 11, 2014 Ashutosh R Shyam ET Bureau. The US securities market regulator, Securities ExchangeCommission SEC , allowed the first high-freq uency trade HFT in 1998 Now, such trades account for almost 60-70 per cent of equity volumes in the US. A new book by Michael Lewis, called Flash Boys, claims the US stock market is rigged in favour of HFTs, prompting regulators to take a closer look at the trades ET decodes high frequency trading, also known as algorithmic trading. What is high frequency trade. It is a trade based on computer programming, referred to as algorithm that executes orders in exchange-traded securities swiftly Unlike a trading order initiated by a trader, an algorithm is designed to process a colossal amount of data in a fraction of a second. The objective of high-frequency trade HFT is to boost profitability by executing bulk trades on any trading opportunity available at wafer-thin margin The success of an HFT trader depends on the speed of the transaction. The average transaction time for HFT now is micro-milli seconds A milli second is 1 1,000th of second and a micro second is 1 1,000,000 of a second. What is a high frequency trader s mode of operation. On the basis of historical data, a tested pattern is formed to execute numerous trading strategies The computer programmer writes an algorithm based on many such patterns. Depending on the risk-reward rules set in a computer programme, HFT traders move in and out of traded securities, in a time span ranging from a fraction of a second to a few hours. For instance, on analysing some historical data, a programmer may find that about 70-75 per cent of the time, whenever a particular stock breaks below the 10-day moving average on a weekly basis, it leads to a 5 per cent correction in the stock price. On the basis of this trend, whenever that particular stock breaks below the 10-day moving average on a weekly basis, the computer will automatically initiate a sell order in bulk quantity. In other words, an HFT trader exploits predictable temporary deviation from stable statistical relationship among stocks Rather than long-term investors, an HFT trad er usually competes with other HFT traders. What are the basic rules for an HFT trader. The odds of going wrong can be as high six out of 10 times, but profits earned on right trades are many times higher than the loss incurred on wrong trades As a result, Sharpe ratio, a measure of return adjusted for risk is significantly higher than the traditional buy sell strategy. What is the history of HFT trading. US market regulator Securities and Exchange Commission SEC allowed the first HFT trade in 1998 Now, almost 60-70 per cent of equity trading volumes in the US is an HFT. According to Bank of England, HFT trades in Europe reached 40 per cent of equity order volumes, and in Asia, it ranges between 5-10 per cent Getco, Knight Capital, Jump Trading, and Citadel are among the largest HFT trading firms in the US. Why are HFT traders under regulatory lens. Globally, market regulators believe HFT traders bring excessive volatility to the markets and pose serious risks to the financial system While an alysing the reasons for the flash crash that occurred in May 2010, the US SEC concluded in its report that the action of HFT traders contributed to volatility. HFT traders are levied charges for benefiting from the index re-balancing by mutual funds For instance, on account of market capitalisation adjustment, if a stock is moving in or out of the index, the algorithm provides for a projection of the expected stock price movement on the basis of an institutional order-book leading to really handsome returns. Italy was the first country to introduce a levy of 0 002 per cent on an equity transaction that lasts less than 0 05 seconds. What does an HFT trader bring to markets. An HFT trader acts as one of the most important market-makers and brings down the spread between the bid and ask prices. For instance, if the bid price of any security is Rs 100 and ask price Rs 101, the HFT trader will try to place an order at Rs 100 05 for bid and Rs 100 95 for an ask quote This action leads to the exec ution of the trade. High frequency trades form just one-third of total volumes in India. April 11, 2014 Biswajit Baruah ET Bureau. MUMBAI The obscure world of high-frequency trading HFT has come under the spotlight of late after Michael Lewis s latest book Flash Boys A Wall Street Revolt. In India, too, the revelations in the book have caught the attention of critics, authorities and market players, but that is yet to spark a hue and cry as in the US This is because such trades account for just a third of the total trading volumes on Indian bourses against the 60-70 per cent in most developed markets in the US and Europe. Volumes under algorithmic trading a type of HFT which was launched in India in 2009, witnessed a spurt initially, but have remained stagnant of late as the regulator frowns on the influence of such trades on the market In algorithmic trading, a system executes pre-programmed orders based on timing, price, or quantity of the order In most cases, the orders are executed by t he computer. As a result, the speed of execution has reduced from milliseconds to microseconds and is expected to move to nanoseconds The big players in the business in India are said to be foreign investment banks such as JP Morgan, Morgan Stanley, Credit Suisse, and Deutsche Bank. Algorithmic trading has not picked up in India as the awareness about this particulate trading platform is not much among market participants At this juncture, only select institutional clients and HNIs are using this platform, Sudip Bandyopadhyay, managing director and CEO at Destimoney Securities, said. The algorithmic trading programme is very successful when there is increased volatility in the markets, as our own brokerage algorithmic software is designed like that, he said Algorithmic trading has opened up faster access to Indian markets for financial institutions across the world However, better algorithms with mathematically proven strategies that consume liquidity and faster systems with very low latency are the need of the day. Critics said it can cause sudden market crashes and easily mask market manipulation or other illegal activity In HFT, the objective is to enter and exit frequently and take advantage of daily and intra-day changes. Typically, HFT does not lead to any delivery positions and all transactions are reversed in the same day In the past few months, foreign institutional investors FIIs have used the algorithmic trading platform for buying shares. Algorithmic trading gives the best price advantage in the market as the system has the speed advantage, said Raghu Kuma r, co-founder at RKSV, a Mumbai-based discount brokerage. March 12, 2014 Bloomberg. NEW YORK Growth in high-frequency and algorithmic trading may promote efficiency in the spot-trading foreign exchange market according to a research paper published by the Federal Reserve Bank of New York. Arbitrage opportunities, or market price differences, occurred in about 1 in every 20 seconds between the euro-dollar, dollar-yen and euro-yen currency pairs during the active part of the trading day during early 2000s, Ernst Schaumburg a research officer at the New York Fed wrote in a report published on Tuesday, citing EBS data. The discrepancy has declined since about 2004 and has been almost zero since 2008, he said. While other factors may be at play, these data are certainly consistent with a view that the rise in algorithmic and high-frequency trading enhanced market efficiency as measured by the availability and persistence of pricing arbitrage opportunities available in the FX spot market, Schaumb urg wrote High-frequency trading in foreign-exchange markets rose to 25 of the market in 2011 from nearly nonexistent about 14 years ago, according to the report, citing Bank for International Settlements data. The report cited an example using 2007 EBS price quotes, in which an investor could have used 1 billion euros to buy 1 316 billion, then converted the position to 154 2 billion yen, and then finally exchanged it again to Europe s common currency, yielding a profit of 120 65 euros per 1 million invested The so-called round-trip transaction, or triangular arbitrage, doesn t include transaction costs. While this profit may seem small, in efficient markets such arbitrage opportunities ought to be short-lived and few and far between, Schaumburg wrote Schaumburg couldn t immediately be reached by telephone for comment. January 23, 2014 PTI. MUMBAI To address the challenges posed by algorithmic or high frequency trading, market regulator Sebi will organise a two-day conference starting January 27.Algorithmic trading or algo in market parlance refers to orders generated at a super-fast speed by use of advanced mathematical models that involve automated execution of trade, and it is mostly used by large institutional investors. The high frequency trading exposes the market to possible systemic risks. The rise of High frequency trading HFT , a type of algo trading, has raised concerns with regard to its impact on market quality, financial stability and regulatory framework. The Securities and Exchange Board of India Sebi is organising its first international research conference from January 27- 28 here. The theme of the conference is HFT, Algo Trading and Co-location, according to a statement. During the two-day conference, participants will also discuss issues related to information asymmetry, retailinvestors HFT in developing countries and technology as an enabler to re-level the field. Academicians, market practitioners, regulators from countries such as the US, Spain, Australia, Canada and Japan, among others, would participate at the event. There is a divide in pool of thoughts over positive impact of HFT and associated risks Because of its relative novelty and the uncertainty related to many of the trading strategies being used today, the debate over high frequency trading is of contemporary relevance, Sebi said. As both old and new emerging markets continue to become highly digitised, algo trading strategies will constantly advance, it added. Sebi first issued guidelines on algo trading in March 2012, after it witnessed a growing trend of usage of advanced technology for trading in financial instruments Later in 2013, the regulator tightened the norms related to algo trading. January 19, 2014.I have seen The Wolf of Wall Street and don t think very highly of it, though the acting, particularly Leonardo DiCaprio s, was very good Firstly, it was way too long Secondly, the movie was highly exaggerated It is hard to believe that the things portrayed in the movie like drinking and doing drugs at work were common in the US even then It was more an exception rather than the rule In the past 15 years such stories have been hard to come by even the investment banks that we read about, after the Lehman Brothers collapse, were not on this need to keep in mind the movie is set in the 1990s when stock market s were not evolved It was still early days for markets, online trading was nascent and the rules of the game were not established. Fortunately or unfortunately, India was lagging behind developed markets We opened the economy in 1991 and online trading came to India only in 1994 Markets here have not seen the high point the US has, not even in 2007 India accounts for only 0 5-1 of the global fee income and broking commission pool, while the US accounts for 30-40 Average commissions in India in the early 1990s used to be 3-5 , and are today only one-hundredth of that at 0 03-0 05.Algorithmic trading now accounts for 90 of volumes here gone are the rings and the screaming I still remember the first time I visited the ring at the Bombay Stock Exchange in 1993 I had heard and read a lot about it and it was a surreal experience It was around 12 30 pm on a really hot day and everyone was sweating and shouting I could not understand what anyone was saying but people were animatedly buying and selling. The 1990s and early 2000s were marked by long periods of inactivity For a year after the Harshad Mehta scam, people in brokerages would come in at 10 am and leave at 10 15 am There was also a lot of free time once again after the dotcom bust While in the movie, people are really stressed out at work, here the stress was over not having much to do and the fear of losing one s job. In India, 80 of the funds flow is controlled by banks whereas in the US it is only 40-50 Brokers in India never had the kind of money that the movie shows brokers making Owners of brokerages here couldn t display their wealth the way DiCaprio does in the movie because there was no wealth here If the total volume on the markets was Rs 100 crore a day, it was a really big deal Whenever brokers made some money, they would typically invest in a house There was no cash flow I don t remember a single broker whose wealth could be compared to that of an industrialist. We have never had the excesses of Wall Stree t because the broking community is quite conservative by nature and also because of the rules put in place by the Reserve Bank of India and the Securities and Exchange Board of India Most of the community was either Gujarati or Marwari, who are fairly traditional even now I wouldn t say drinking was absent at parties, but it was relatively uncommon Most brokerages were also family-owned and therefore an extension of their home The most important day for brokerages used to be and still is, to an extent, Diwali, the day of Muhurat trading, where most of the owners family is present That is the culture. December 16, 2013 Ram Sahgal ET Bureau. MUMBAI Concerned by a sharp fall in commodity exchange volumes, regulator Forward Markets Commission FMC might announce stronger risk management measures and a few proposals aimed at attracting greater participation in a market hit by the fallout from a newly-introduced transaction tax and the Rs 5,500-crore NSEL crisis. Apart from finalising norms on S ettlement Guarantee Fund SGF , used by exchanges to contain risk of counter party default, the regulator could relax exposure limits for brokers and clients in farm and non-farm futures contracts and automated trading norms to deepen the market, said a commodity exchange official privy to discussions held a few weeks ago. The specific details of these proposals would be finalised early next month, said the official SGF norms will provide comfort to participants that exchanges have the wherewithal to combat risk At the same time, to boost trading in derivative contracts in agri contracts and especially those where commodity transaction tax CTT has been levied, position limits are proposed to be raised Also, algo guidelines stipulate an order to trade ratio of 20 that may be relaxed. For instance, said another exchange official, since CTT was levied on all gold contracts in July, many participants shifted from kilo gold contracts to mini 100 gm and smaller denomination contracts in the metal The plan is to increase position limits in such contracts, which would to some extent offset the effects of CTT In algorithmic trading, every 20 orders currently must result in one trade That ratio would most likely be increased by FMC. The need for SGF norms was felt in light of the NSEL scam, which surfaced in July en d Exchanges have to constitute SGF from 5 of gross revenues each year and base minimum capital paid by brokers to become members of an exchange While it is refundable to brokers, BMC is that portion of deposit on which brokers do not get any trading exposure. In a market hit by CTT and the NSEL crisis, these measures could add their mite to the fallen turnover, said Suresh Nair, executive director, Admisi Commodities. However, other brokers privy to discussions by the newly constituted risk management group - seized of the SGF and position limits proposals - said final norms on SGF will have to take into account the concern that BMC could be withdrawn in case a broker surrenders membership on an exchange On algo trades, they said that a lot of attention must be paid on how to stop the algo from placing orders relentlessly, especially in contracts where far months are not too liquid If, for instance, an algo relentlessly sells a near month liquid contract and buys a far month less liquid contract, it could create artificial scarcity in the far month and also price anomaly. In the fortnight ended November 30, trading volumes on six exchanges led by MCX dipped 65 from a year ago to 2 6 lakh crore Of this, bullion trade was 1 02 lakh crore, down 72 The markets have fallen drastically from July mainly because of CTT of Rs 10 per lakh on sell side of non-farm and processed commodities and a 5,500-crore payment default on Financial Technologies-owned NSEL, which has dented investor confidence FT is also the promoter of MCX, India s largest commex. May 21, 2013 PTI. MUMBAI Tightening the norms for algorithmic trading, market regulator Sebi today made it mandatory for the users to have their systems audited every six months and increased penalties on errant stock brokers. Algorithmic trading or algo in market parlance refers to orders generated at a super-fast speed by use of advanced mathematical models that involve automated execution of trade It is mostly used by large institutional investors and has raised concerns that algo exposes small investors, and the market itself, to possible systemic risks. Sebi first issued guidelines on algo trades in March 2012, after it witnessed a growing trend of usage of advanced technology for tradi ng in financial instruments In a circular issued today, Sebi said it had decided to review the algo guidelines following representations made by its Technical Advisory Committee and the new norms will come into effect from May 27.As per the amended guidelines, stock brokers and traders offering algo facility would need to subject their algorithmic trading system to audit every six months so as to ensure compliance with the requirements prescribed by Sebi and the stock exchanges. Such audits would need to be undertaken by a system auditor with relevant certifications. Sebi has also allowed the stock exchanges to impose suitable penalties in case of failure of the stock broker or trading member to take satisfactory corrective action within a time-period specified by the bourses. In order to further strengthen surveillance mechanism related to algo trading and prevent market manipulation, stock exchanges are directed to take necessary steps to ensure effective monitoring and surveillance of orders and trades resulting from trading algorithms, Sebi said. The regulator has also asked the bourses to periodically review their surveillance arrangements to better detect and investigate market manipulation and market disruptions. In March last year, Sebi had asked the exchanges to implement a framework of economic disincentives for high daily order-to-trade ratio for orders placed from trading algorithms by prescribing penalties in form of charges to be levied per algo orders at various levels. The penalty rates specified by the stock exchanges have been reviewed and in order to provide sufficient deterrence, stock exchanges are directed to double the existing rates of charges to be levied per algo orders specified in their circulars notices, Sebi said The stock exchanges have also been asked to impose an additional penalty in form of suspension of proprietary trading right of the stock broker trading member for the first trading hour on the next trading day in case a stock broker trading member is penalised for maintaining high daily order-to-trade ratio , if such an entity has been penalised on more than 10 occasions in the previous thirty trading days. Sebi said this step would discourage repetitive instances of high daily order-to-trade ratio Sebi also said that the deficiencies or issues identified during the audit of trading algorithm or software of brokers would need to be reported to the stock exchanges immediately after the completion of such audits. Further, the stock broker and trading members would need to take immediate corrective actions to rectify such issues or deficiencies In case of serious deficiencies or issues or failure to take satisfactory corrective action, the broker or trading member would be barred from using the trading software till the time these issues are rectified and a satisfactory system audit report is submitted to the stock exchange.
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