NSE regulates retail algo trading with new rules

The National Stock Exchange (NSE) has introduced a new framework regulating retail algorithmic (algo) trading, requiring static IPs and setting order-per-second thresholds. This aims to bring greater oversight to automated trading strategies. The new rules mandate that algo traders use static IP addresses and register algorithms sending 10 or more orders per second. Third-party algo vendors will also be subject to regulatory oversight, ensuring safer retail participation. These changes, effective May 5th, will impact retail traders by requiring setup updates and brokers by necessitating backend system enhancements. Experts anticipate challenges in implementation and potential impacts on high-frequency traders.