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Are fleeting orders by high frequency traders a source of market abuse?

by Nidhi Aggarwal and Chirag Anand SEBI recently released its discussion paper on algorithmic trading. The paper proposes several measures to address various concerns that have been expressed about the rise of new technology in the field of financial markets. One of the candidate interventions that SEBI has proposed is the imposition of ‘minimum resting […]

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SEBI’s new “trade annulment” policy

By Nidhi Aggarwal and Chirag Anand One of the main functions of organised financial markets is efficient price discovery. Under certain circumstances, prices fail to reflect the correct information. These include erroneous trades or market manipulation. Trades at non informative prices impose significant costs on other market participants and the public at large. There can […]

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Self trading is not synonymous with market abuse

By Nidhi Aggarwal, Chirag Anand, Shefali Malhotra, Bhargavi Zaveri 1   Introduction Orders that match with each other with no resultant change in the ownership are termed as self-trades. Lately, there have been increased concerns regarding self-trades in equity markets in India. With no genuine trading intent, these trades are seen as manipulative in nature, […]

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The changing landscape of equity markets

By Nidhi Aggarwal and Chirag Anand The arrest of a London based algorithmic trader, Navinder Singh Sarao, on charges of triggering the US flash crash of 2010 has once again brought regulatory concerns on high frequency trading (HFT) to the forefront. With the underlying fear that the use of high speed complex algorithms can pose […]

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SAT order on NSE’s actions after the Emkay crash

By Pratik Datta and Chirag Anand In a modern securities market, eight different entities are involved in trading a single security: Two brokers, two custodians, a stock exchange, a clearing house, a central securities depository, and a registrar or stock transfer agent. The image below shows the working connections among these entities while trading the […]

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