India plans rules to slow down

MUMBAI: India’s markets regulator plans to introduce steps to slow down high-frequency trading in the next three months, according to its chairman.

The Securities & Exchange Board of India (Sebi) is considering mandating a fraction-of-asecond speed bump and alternating execution between computer and manual orders, chairman U. K. Sinha said in an interview at his office in Mumbai.

The regulator is also examining a proposal to prevent traders from canceling an algorithmic order until it is confirmed by the bourse, to counter the practice of seeing an order show up momentarily before it’s cancelled. “The worry about misuse or mishap because of HFT and co-location is not over,” Sinha said. “It’s an issue and we haven’t solved it yet.”

Sebi plans to come out with a discussion paper on the proposed changes within a month and could implement final guidelines in three months if no further consultation is needed, Sinha said. Also under consideration is randomising orders.