While ruling out an immediate ban on algorithmic trading products, the Securities and Exchange Board of India (SEBI) has nonetheless expressed concern at the use of such products in the market. ?We are very worried about the use of about high frequency trading tools and even other countries are taking a look at them,? Sebi chairman UK Sinha said at a CII conference on capital markets on Tuesday. The Sebi chief said the regulator would be cautious about allowing new products, especially those that were perceived to be risky. While calling for adequate risk management systems to be put in place by those using them, Sinha said Sebi will be conducting a review of the infrastructure and the risk management systems for products like algorithms.
Algo trading a worry: Sebi
While ruling out an immediate ban on algorithmic trading products, the Securities and Exchange Board of India has nonetheless expressed concern at the use of such products in the market.
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This article was first uploaded on November thirty, twenty eleven, at thirty-eight minutes past three in the night.