SEBI raises Limit for Algorithmic Trading in Commodity Derivatives
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- Last Updated on 21 March, 2022
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CIRCULAR SEBI/HO/CDMRD/CDMRD_DRM/P/CIR/2022/30, March 17, 2022
The SEBI has raised the limit for placing a number of orders per second (OPS) to up to 120 by a user from the existing limit of 100 for algorithmic trading in Commodity derivatives. The limit on OPS may be further relaxed by the Stock Exchanges based on the increased peak order load observed and corresponding upgrade of infrastructure capacity to ensure that the capacity of the trading system of the Stock Exchange remains at least four times the peak order load. The relaxation in limit shall be subject to the approval of SEBI. The circular shall be effective from April 01, 2022.
“The Stock Exchange shall place a limit (X) on the numbers of orders per second from a particular CTCL ID/ATS User-ID not exceeding one hundred and twenty orders per second. Compliance with the limit “X” so set by a particular CTCL ID/ATS User-ID shall be measured over a rolling period of five seconds (i.e., 5X orders for 0th – 5th second, 5X orders for 1st-6th second, 5X orders for 2nd to 7th second and so on). For number of orders exceeding the limit (X) set by the Stock Exchange, the Stock Exchange shall prescribe economic disincentives and inform the same to SEBI. Further, Stock Exchange shall ensure that the limits provided is subject to its ability to handle the load.” Said SEBI.
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