The National Stock Exchange (NSE) has changed the approval mechanism for tools and mathematical models used by brokers for speedy clearance through algorithmic trading, Business Standard reports. The decision support tools or algorithm applications submitted by the members will be categorized in approved algorithm through computer-to-computer link (CTCL), non-approved algorithm through CTCL and direct market access algorithm. The exchange will identify the vendor’s product as “approved algorithm” on the completion of conditions specified by the Securities and Exchange Board of India and by it. For non-approved algorithm through CTCL, members will need to provide demonstration of the automated risk-management features for each decision support tool/algorithmic trading product.
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