The Securities and Exchange Board of India (Sebi), the Indian stock market regulator, will be analyzing the risk management system in high-frequency or algorithmic trading, The Hindu Business Line reports. The move follows the October 26 event when the Bombay Stock Exchange (BSE) was compelled to cancel all derivatives trades after it observed large movements in Sensex futures during the special session of Muhurat trading for the Diwali festival.
The incident raised the issue of risk management measures in high-frequency trading. Sebi said some members may be involved in the manipulation. The review will consider changes in the margin system as well as the capacity to take the trades.
Click here for the story from The Hindu Business Line.
Click here for additional coverage from Business Standard.