Now retail investors will get the opportunity of algo trading, SEBI has proposed

Ahmedabad: Market regulator SEBI has proposed to launch algorithmic trading (algo trading) facility for retail investors. This technology makes trading faster, cheaper and transparent through computer programs.

Till now this facility was available only to institutional investors, but SEBI has decided to make it available to retail investors also.

Using algo trading allows investors to buy and sell quickly. This makes transactions in the market easier and increases liquidity. SEBI says that this facility will be provided to retail investors with security and proper rules.

According to SEBI, the facility of algo trading will be provided by stock brokers. For this, the broker will first have to take permission from the stock exchange. Every transaction in trading will be tagged with a unique identifier provided by the stock exchange, so that it can be tracked.

If brokers want to make any changes to the algorithm system, they will have to get approval from the exchange for the same. Application programming interface will be used for algo trading. Brokers will play an important role in this process.