A story I did yesterday for the news orgn I work for presently:
http://www.cogencis.com/differentiators/ShareNews.aspx?newsId=1003045
[C] Ten brokers using algorithms account for 22% of NSE trading turnover
Cogencis, Monday, Aug 28
NEW DELHI - Ten brokers using algorithmic trading accounted for over a
fifth, or 22.3%, of total trading turnover on the National Stock Exchange
during Apr 2016-Feb 2017, said a report on algorithmic trading and high
frequency trading.
The report was submitted to the Department of Economic Affairs today.
The next 10 brokers executing algorithmic trades made up for another 8.6%
of NSE's combined turnover in equity cash and derivatives markets, the report
said.
Algorithmic trades by all brokers constituted 47% of the total turnover
on the NSE, the report said. The report did not give any data on the same for
the BSE.
Algorithmic trading makes the use of computer programs to generate and
execute large orders in electronic markets using statistical and technical
models to analyse real-time price movements and make profitable trading
decisions.
The report, prepared under a joint research initiative of National
Institute of Financial Management and the economic affairs department, said
more than 80% of algorithmic orders on NSE and BSE are generated from
co-location facilities at both the exchanges.
The report recommended that exchanges invest in advanced surveillance
technology to detect harmful and manipulative algorithms and high frequency
trades, which they lack as of now.
With regard to high frequency trading, which makes use of algorithms, the
report noted that high frequency traders push a stock's share price up or
down if institutional investors have large buy or sell orders, which results
in an automated version of front-running.
"Mutual funds that do a lot of large block trading and tend to trade
urgently or predictably are worst hit... (since) high frequency traders'
algorithms sniff their large orders and capitalise on this information," the
report said.
Reported by Rajesh Gajra
http://www.cogencis.com/differentiators/ShareNews.aspx?newsId=1003045
[C] Ten brokers using algorithms account for 22% of NSE trading turnover
Cogencis, Monday, Aug 28
NEW DELHI - Ten brokers using algorithmic trading accounted for over a
fifth, or 22.3%, of total trading turnover on the National Stock Exchange
during Apr 2016-Feb 2017, said a report on algorithmic trading and high
frequency trading.
The report was submitted to the Department of Economic Affairs today.
The next 10 brokers executing algorithmic trades made up for another 8.6%
of NSE's combined turnover in equity cash and derivatives markets, the report
said.
Algorithmic trades by all brokers constituted 47% of the total turnover
on the NSE, the report said. The report did not give any data on the same for
the BSE.
Algorithmic trading makes the use of computer programs to generate and
execute large orders in electronic markets using statistical and technical
models to analyse real-time price movements and make profitable trading
decisions.
The report, prepared under a joint research initiative of National
Institute of Financial Management and the economic affairs department, said
more than 80% of algorithmic orders on NSE and BSE are generated from
co-location facilities at both the exchanges.
The report recommended that exchanges invest in advanced surveillance
technology to detect harmful and manipulative algorithms and high frequency
trades, which they lack as of now.
With regard to high frequency trading, which makes use of algorithms, the
report noted that high frequency traders push a stock's share price up or
down if institutional investors have large buy or sell orders, which results
in an automated version of front-running.
"Mutual funds that do a lot of large block trading and tend to trade
urgently or predictably are worst hit... (since) high frequency traders'
algorithms sniff their large orders and capitalise on this information," the
report said.
Reported by Rajesh Gajra
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