En introduksjon til det indiske aksjemarkedet Mark Twain delte en gang verden inn i to typer mennesker: de som har sett det berømte indiske monumentet, Taj Mahal, og de som ikke har. Det samme kan sies om investorer. Det er to typer investorer: de som vet om investeringsmulighetene i India og de som ikke. India kan se ut som en liten prikk til noen i USA, men etter nærmere inspeksjon finner du de samme tingene du kan forvente fra et lovende marked. Her gir du en oversikt over det indiske aksjemarkedet og hvordan interesserte investorer kan få eksponering. Tutorial: Major Investment Industries BSE og NSE Det meste av handelen på det indiske aksjemarkedet foregår på sine to børser: Bombay Stock Exchange (BSE) og National Stock Exchange (NSE). BSE har eksistert siden 1875. NSE, derimot, ble grunnlagt i 1992 og begynte å handle i 1994. Imidlertid følger begge børsene samme handelsmekanisme, handelstid, oppgjørsprosess osv. Ved den siste tellingen, BSE hadde rundt 4.700 børsnoterte bedrifter, mens den konkurrerende NSE hadde ca. 1200. Av alle børsnoterte firmaer på BSE utgjør kun rundt 500 bedrifter mer enn 90 av markedsverdien, resten av mengden består av svært illikvide aksjer. Nesten alle de betydelige bedriftene i India er notert på begge børsene. NSE har en dominerende andel i spot trading. med rundt 70 av markedsandelen fra 2009 og nesten et fullstendig monopol på derivathandel, med om lag 98 aksjer i dette markedet, også fra 2009. Begge utvekslingene konkurrerer om bestillingsflyten som fører til reduserte kostnader, markedseffektivitet og innovasjon. Tilstedeværelsen av arbitrageurs holder prisene på de to børsene innenfor et svært stramt utvalg. (For mer informasjon, se Fødsel av børs.) Handelsmekanisme Trading på begge børsene foregår gjennom en åpen elektronisk grenseordre. i hvilken rekkefølge samsvar er utført av handelsdatamaskinen. Det er ingen markedsførere eller spesialister, og hele prosessen er ordrevennlig, noe som betyr at markedsordrer plassert av investorer automatisk matches med de beste begrensningsordrene. Som et resultat forblir kjøpere og selgere anonyme. Fordelen med et ordre-drevet marked er at det gir større åpenhet. ved å vise alle kjøps - og salgsordrer i handelssystemet. I mangel av markeds beslutningstakere er det imidlertid ingen garanti for at bestillinger vil bli utført. Alle ordrer i handelssystemet må plasseres gjennom meglere. hvorav mange gir netthandel til detaljhandelskunder. Institusjonelle investorer kan også dra nytte av alternativet direkte markedsadgang (DMA), der de bruker handelsterminaler fra meglere til å plassere ordrer direkte i aksjemarkedet. (Les mer om meglere og netthandel: Regnskap og ordre.) Oppgjørssyklus og handelstider Aktiemarkedsmarkeder følger en T2-avvikling. Dette betyr at enhver handel som foregår mandag, blir avgjort på onsdag. All handel på børsene foregår mellom kl. 09.55 og 15.30, Indian Standard Time (5,5 timer GMT), mandag til fredag. Levering av aksjer må skje i dematerialisert form, og hver bytte har sitt eget clearinghus. som forutsetter all oppgjørrisiko. ved å tjene som en sentral motpart. Markedsindekser De to fremtredende indiske markedsindeksene er Sensex og Nifty. Sensex er den eldste markedsindeksen for aksjer. Det inkluderer aksjer på 30 selskaper notert på BSE, som representerer om lag 45 av indeksenes frie flytkapitalmarkedsføring. Den ble opprettet i 1986 og gir tidsseriedata fra april 1979, videre. En annen indeks er SampP CNX Nifty. Det inkluderer 50 aksjer notert på NSE, som representerer om lag 62 av markedsverdien til frie flyter. Den ble opprettet i 1996 og gir tidsseriedata fra juli 1990, videre. (For å lære mer om indiske børser, vennligst besøk bseindia og nse-india.) Markedsforordning Det overordnede ansvaret for utvikling, regulering og tilsyn av aksjemarkedet ligger hos Securities Amp Exchange Exchange of India (SEBI), som ble dannet i 1992 som uavhengig myndighet. Siden da har SEBI konsekvent prøvd å legge ned markedsregler i tråd med de beste markedspraksis. Den har enorme krefter for å pålegge straffer på markedsdeltakere i tilfelle brudd. (For mer innsikt, se sebi. gov. in). Hvem kan investere i India India begynte å tillate utenom investeringer bare på 1990-tallet. Utenlandske investeringer er klassifisert i to kategorier: utenlandske direkte investeringer (FDI) og utenlandske porteføljeinvesteringer (FPI). Alle investeringer hvor en investor deltar i den daglige ledelsen og driften av selskapet, blir behandlet som FDI, mens investeringer i aksjer uten kontroll over ledelse og drift blir behandlet som FPI. For å gjøre porteføljeinvesteringer i India, bør man være registrert enten som utenlandsk institusjonell investor (FII) eller som en av underregnskapene til en av de registrerte FIIene. Begge registreringene er gitt av markedsregulatoren SEBI. Utenlandske institusjonelle investorer består hovedsakelig av verdipapirfond. pensjonsfond. begavelser, statsobligasjonsfond. forsikringsselskaper, banker, kapitalforvaltningsselskaper etc. For tiden tillater ikke utenlandske personer å investere direkte i aksjemarkedet. Imidlertid kan personer med høy nettoverdi (de med en nettoverdi på minst US50 millioner) bli registrert som underkontoer for en FII. Utenlandske institusjonelle investorer og deres underkontoer kan investere direkte i noen av aksjene notert på noen av børsene. De fleste porteføljeinvesteringene består av investering i verdipapirer i primær - og sekundærmarkedet. inkludert aksjer, obligasjoner og warrants av selskaper notert eller notert på en anerkjent børs i India. FIIer kan også investere i unoterte verdipapirer utenfor børsene, med forbehold om godkjenning av prisen av Reserve Bank of India. Til slutt kan de investere i andeler i verdipapirfond og derivater som handles på en børs. En FII som er registrert som en gjeldsfinansiert FII, kan investere 100 av sin investering i gjeldsinstrumenter. Andre FIIer må investere minst 70 av sine investeringer i egenkapitalen. Balansen på 30 kan investeres i gjeld. FIIer må bruke spesielle ikke-residente rupee bankkontoer for å flytte penger inn og ut av India. Balansene som holdes på en slik konto, kan bli fullstendig repatriert. (For relatert lesing, se Re-evaluering Emerging Markets.) Restriksjoner Investeringslofter Indiens regering foreskriver FDI-grensen, og forskjellige tak har blitt foreskrevet for ulike sektorer. Over en periode har regjeringen gradvis økt takene. FDI tak faller mest i området 26-100. Som standard er maksimumsgrensen for porteføljeinvestering i et bestemt børsnotert selskap bestemt av FDI grensen foreskrevet for sektoren som firmaet tilhører. Det er imidlertid to ytterligere restriksjoner på porteføljeinvesteringer. For det første er den samlede investeringsgrensen for alle FII, inkludert deres underkontoer i et bestemt firma, fastsatt til 24 av den innbetalte kapitalen. Det samme kan imidlertid heves opp til sektorkapten, med godkjenning av selskapets styre og aksjonærer. For det andre bør investering av en enkelt FII i et bestemt firma ikke overstige 10 av selskapets innbetalte kapital. Forskriftene tillater et eget 10 tak for investering for hver av delregnskapene til en FII, i et bestemt firma. I tilfelle utenlandske selskaper eller enkeltpersoner investerer som en underkonto, er det samme taket bare 5. Forskriftene stiller også rammer for investeringer i egenkapitalbasert derivathandel på børser. (For restriksjoner og investeringslofter, gå til fiilist. rbi. org. in) Investeringsmuligheter for utenlandske investorer Utenlandske enheter og enkeltpersoner kan få eksponering for indiske aksjer gjennom institusjonelle investorer. Mange India-fokuserte verdipapirfond blir populært blant private investorer. Investeringer kan også gjøres gjennom noen av offshoreinstrumentene, som deltakende notater og kvitteringer. som amerikanske kvitteringer, globale kvitteringer (GDR) og børsnoterte fond (ETF) og børsnoterte notater (ETN). (For å lære om disse investeringene, se 20 Investeringer du bør vite.) I henhold til indiske bestemmelser kan deltakende notater som representerer underliggende indiske aksjer utstedes offshore av FII, kun til regulerte enheter. Selv små investorer kan imidlertid investere i amerikanske kvitteringer som representerer de underliggende aksjene til noen av de kjente indiske firmaene, notert på New York Stock Exchange og Nasdaq. ADR er denominert i dollar og underlagt forskrifter fra US Securities and Exchange Commission (SEC). På samme måte er globale kvitteringer notert på europeiske børser. Imidlertid bruker mange lovende indiske bedrifter ennå ikke ADR eller GDR til å få tilgang til offshore investorer. Detaljhandel investorer har også mulighet til å investere i ETF og ETN, basert på indiske aksjer. India ETFs foretar for det meste investeringer i indekser bestående av indiske aksjer. De fleste av aksjene som inngår i indeksen er de som allerede er notert på NYSE og Nasdaq. Fra og med 2009 er de to mest fremtredende ETFene basert på indiske aksjer Wisdom Tree India Earnings Fund (NYSE: EPI) og PowerShares India Portfolio Fund (NYSE: PIN). Den mest fremtredende ETN er MSCI India Index Exchange Traded Note (NYSE: INP). Både ETF og ETN gir god investeringsmulighet for eksterne investorer. Bunnlinjen Emerging markets som India, blir fort motorer for fremtidig vekst. For tiden er bare en svært lav prosentandel av husholdningenes besparelser av indianere investert i det innenlandske aksjemarkedet, men med BNP på 7-8 årlig og et stabilt finansmarked. vi kan se flere penger å bli med i løpet. Kanskje det er riktig tid for utenforstående investorer å seriøst tenke på å bli med i India bandwagon. Artikkel 50 er en forhandlings - og oppgjørsklausul i EU-traktaten som skisserer trinnene som skal tas for ethvert land som. Beta er et mål for volatiliteten, eller systematisk risiko, av en sikkerhet eller en portefølje i forhold til markedet som helhet. En type skatt belastet kapitalgevinster pådratt av enkeltpersoner og selskaper. Kapitalgevinst er fortjenesten som en investor. En ordre om å kjøpe en sikkerhet til eller under en spesifisert pris. En kjøpsgrenseordre tillater handelsmenn og investorer å spesifisere. En IRS-regelen (Internal Revenue Service) som tillater straffefri uttak fra en IRA-konto. Regelen krever det. Det første salg av aksjer av et privat selskap til publikum. IPO er ofte utstedt av mindre, yngre selskaper som søker. FOREX Valutamarkedet er et globalt desentralisert marked for handel med valutaer. Dette inkluderer alle aspekter ved kjøp, salg og utveksling av valutaer til nåværende eller faste priser. På grunn av suverenitetsproblemet når man involverer to valutaer, har forex liten tilsynsorgan som regulerer sine handlinger. Valutamarkedet bistår internasjonal handel og investeringer ved å muliggjøre valutaomregning. For eksempel tillater det en virksomhet i USA å importere varer fra EU-medlemsland, spesielt Eurozone-medlemmer, og betale euro, selv om inntektene er i amerikanske dollar. Den støtter også direkte spekulasjon og evaluering i forhold til verdien av valutaer, og bærehandelen, spekulasjon basert på rentedifferansen mellom to valutaer. Trading i Forex-INDIA Forex betyr valutaparhandel. Innen indisk inneslutning kunne vi handle alt som var benchmarked mot INR. Det er lovlig å handle med indiske meglere som gir tilgang til indiske utvekslinger (NSE, BSE, MCX-SX) som gir tilgang til valutaderivater. For tiden er handelsinstrumentene USDINR, JPYINR, GBPINR, EURINR. Handel i Forex-MAJOR valutapar Et vellagd valutapar er forholdet mellom euroen og amerikanske dollar, betegnet som EURUSD. Sitatet EURUSD 1,2500 betyr at en euro utveksles for 1.2500 amerikanske dollar. Her er EUR basisverdien, og USD er kontantervalutaen. Men det er ikke mulig for en indian å handle i parene. Reserve Bank of India er kort av dollarbetegnelser. Det betyr at i tilfelle du handler eurusd med quotout av indiaquot spillere, og hvis du mister du vil kjøpe usd fra RBI og sende den bort. Dette fører til økning i underskudd i betalingsbalansen (mangel på valutareserven). Hvis alle i India handler forex med 039 ut av india039 spillere, antar den beryktede karakteren av handel der 90 av handelsmenn til slutt går løs, står RBI for å miste mye dollar. For å kompensere utløpet vil vår regjering bli tvunget til å kjøpe flere amerikanske dollar ved å selge INR til billigere priser. Dermed fører til devaluering av vår INR. Self-Interest of India India kjøper allerede rå og gull fra utlandet ved å betale i dollar. Når regjeringen trenger å importere, må den selge inr og kjøpe amerikanske dollar. Dermed blir dollar sterkere, og vår inr mister sin kjøpekraft på grunn av manglende etterspørsel og overforsyning. Forex trading med ut av India spillere, hvis gjort lovlig vil bli den tredje demonen til å plage av allerede svak valuta. Det er derfor RBI tillater Forex trading i INR-baserte par, som kun handles innen indiske borgere. Dette sikrer at ingen INR forlater landet. Man kan handle usdinr og eurinr på en slik måte at inr blir negated og vi til slutt endrer trading usd vs eur. Dette øker transaksjonskostnaden. Da er det også mangel på likviditet. Men hvis du er helvete bundet til å gjøre dette, er du alltid velkommen til å komme deg rundt denne barrieren og gjøre dine spill. Men hvis du sender penger til utlandet, til FOREX-meglere, er det ikke tillatt å handle i noen derivater, det er ulovlig og ansvarlig for fengsel, fint etc. Linker 46.7k Vis middot View Oppvoter midtpunkt Ikke for reproduksjon Bare valutapar som involverer INR kan handles lovlig på indiske utvekslinger. Det er 4 slike par tilgjengelig for handel. Handel på andre par er ulovlig i henhold til FEMA-loven. Trading i forex markedet gjennom online megler er en ikke-Bailable lovbrudd i India. For handel i Forex må du konvertere INR (indiske rupees) til ønsket valuta du vil bytte, dvs. den valutaen du velger å være basisvalutaen i din handel. Forutsatt at du investerer amerikanske dollar for å kjøpe japansk yen, blir USD din basisvaluta. Reserve Bank of India (RBI) har i stor grad slappet av valutareglene de siste årene, og nå er en borger med indisk statsborgerskap selv mindreårige lov til å bytte ut rupees til opptil 2,00,000 amerikanske dollar per år uten å gi noen grunn til å regjeringen om det. Det er ingen begrensninger på hyppigheten av utveksling i et regnskapsår. Dette har blitt gjort under Liberalized Remittance Scheme (LRS). 2,9k Visninger middot View Oppvoter middot Ikke for Reproduksjon middot Svar forespurt av Vishal Patel Kun valutapar som involverer INR kan handles lovlig på indiske utvekslinger. Det er 4 slike par tilgjengelig for handel. Handel på andre par er ulovlig i henhold til FEMA-loven. Trading i forex markedet gjennom online megler er en ikke-Bailable lovbrudd i India. Det er mange online meglere som misguide retail investorer som hevder forex (spot) trading kan utføres lovlig via dem, men det er ikke sant. Det er generelt å hindre at private investorer ikke mister stor tid (dette er hva RBI hevder). Men etter min mening er det bare for å forhindre valutaflyt (dette er min personlige mening). Noen poeng verdt å vurdere om valutamarkedet er: 1. Forex markedet er svært volatile og uten riktig studie, kan forex trading være selvmord. 2. Online forex meglere gir svært høy innflytelse, som kan vaske ut kontoen din veldig snart hvis du ikke har riktig teknisk ekspertise. 3. Slike handler skjer ikke på en sentral utveksling, de skjer over disken (OTC) og det er ikke så godt regulert. Så hvis du i det hele tatt planlegger å handle forex, bør du utføre Due Diligence og velge en svært pålitelig megler for å beskytte dine hardt opptjente penger. 23.3k Visninger middot Vis Upvotes middot Ikke for Reproduksjon Harald Anderson. Commodity Futures Broker og handelsmann på 1980-tallet. Trading programvareutvikler. Hver gang prisene øker i en vare eller valuta, sangen som politikere synger er at det er feilen til spekulantene. Spekulantene er alltid skyldige for inflasjon og tilhørende prisvekst. Denne historien går tilbake tusenvis av år. I gamle tider, når et rike hadde mer gjeld enn gull, ville kongen hente alle mynter i riket. Ved å gjøre det, ville kongens krigere klemme mynter for å gjøre opp underskuddet før de returnerte mynten til borgerne. Det er derfor mange mynter i dag har rygger rundt kantene sine. (Selv om nesten alle mynter mangler metallinnhold.) Når oljeprisen økte, var det spekulantene som forårsaket problemet. Når metaller prisene stiger, var det spekulantene som var ansvarlige. Forex trading er ulovlig i omtrent tjue land. Disse landene alle skaper propagandaen at et fritt marked som bestemmer verdien av en valuta, er en ting å frykte og chastised fordi det gjør vondt for borgerne. Regjeringen er med andre ord den største determineren av verdi i universet, og enhver som er uenig med den premissen, bør være fengslet, skammet og ydmyket for å ha galgen til å tenke for seg selv. 16k Vis middot Vis Upvotes middot Ikke for Reproduction middot Svar forespurt av Swapnesh Panda Vel, jeg vil sette det på den måten - Det er ikke ulovlig, men det er ikke så greit heller. Mange Bedriftshus gjør FX-handel i hekkens navn. Å sette ting i perspektiv Marginhandel er ikke tillatt, så hvis du gjør det uten margin, det vil si 1: 1 hvor posisjonsstørrelse er lik penger investert, gjør du det bra. Nå kombinert med 200k grense på utenlandske overføringer per regnskapsår maksimalt du kan få, er 0,2 mye å handle i et par som EURUSD (1: 1-margin) som ikke ville være nok til å selv få din overføringskostnad gjenopprettet. Nå som med alle andre lover, er dette også bøyelig. Overfør pengene dine gjennom paypal, moneybooker eller netteller. Så lenge totalverdien per FY er mindre enn 200k, kommer ingen til å bry seg. Hvis du er 10 av det lønnsomme partiet, erklærer du inntekten fra utenlandsk salg. Jeg tror du vil ha det bra. Vel Fx-handel er ikke en lovbrudd, og ingen er plaget hvis du ikke handler i millioner. Og hvis du får deg en lisens ved å danne en Pvt. Ltd selskap. Maks. Straffen kunne være bra. Ansvarsfraskrivelse - Fx-handel er uberegnelig og tar år å perfeksjonere. 90 forhandlere mister sine innskudd på mindre enn en måned. Ting som kan gå opp kan også gå ned i tilfelle markedet går mot deg. Din konto kan ikke overleve hvis du ikke følger riktige pengenehåndteringsteknikker. Bedre å handle i INR-relaterte par som USDINR med en indisk aksjemegler. 1,3k Visninger middot Vis Oppvoter midtpunkt Ikke for reproduksjon Hvordan kan jeg handle forex fra India Er det Halal eller Haram for Muslim å Trade Forex Hvorfor var prisen på gull så høy i 2012 Hva er en streikrate på aksjemarkedet Hvordan kan jeg lovlig starte forex trading i India Hvilken er best Forex trading plattform i India som er lovlig som per SEBI Forex Trading Hjelp Hva er straffen for å gjøre Forex trading i India Er det lovlig å handle i forex alternativer og futures i India Hvorfor er Forex Trading Viktig Skal jeg kjøp GoldSilver som et investeringsalternativ Er det verdt trading forex i India Hvordan kan jeg handle forex trygt fra India Er det noen fra India som handler forex på SVSFX Hvordan tjener jeg penger fra forex trading Er det riktig å handle med meglere utenfor India Hvordan kan man gjøre 4.000month sittende hjemme i 6 ukers tidIndia og det internasjonale handelssystemet PRADEEP S. MEHTA og CHENAI MUKUMBA For å kunne navigere internasjonalt handelsarena, indias nye governme nt vil være opptatt av lever-aging Indias voksende rolle innen det internasjonale handelssystemet for å oppnå både sine nasjonale og internasjonale mål. Etter hvert som det geoøkonomiske landskapet har skiftet de siste årene, har fremvoksende økonomier i økende grad begynt å spille en mer uttalt rolle i en rekke globale økonomiske spørsmål, og som verdens fjerde største økonomi har Indias rolle i dette systemet blitt mer fremtredende . På den siste ministerkonferansen av WTO i Bali, Indonesia i begynnelsen av desember 2013, ble Indias voksende rolle som stemme for de fattige forsterket da den kjempet for å sikre at utfallet ville favorisere ikke bare de fattige innenfor sine egne grenser, men de også i utviklingslandene. Mens medlemmene faktisk kom til enighet etter en langvarig forhandlingsuke, gjenspeilet den store innsatsen det mye større problemet med ikke bare divergerende interesser mellom ulike grupper av land, men også for å tilpasse utviklingsmålene med internasjonale handelsforpliktelser. Mens den første utfordringen vil kreve den samlede politiske viljen til alle WTO-medlemmer, må den andre bli adressert av landsledere innenfor sine egne grenser. Det er i å takle denne andre utfordringen at Indias nye regjering må tenke strategisk for å utnytte fordelene ved det internasjonale handelssystemet for å nå sine nasjonale mål. Indias tilnærming til handelsfremmende har fulgt en todelt tilgang, som omhandler både forsyningssiden og etterspørselssiden begrensninger. Den hadde til hensikt å først implementere innenrikspolitikk for å øke tilbudskapasiteten, og for det andre, adressere etterspørselssiden av handelsfremmende ved å engasjere seg i internasjonale handelsforhandlinger for å sikre bedre markedsadgang. Mens sistnevnte ble oppnådd av Indias engasjement i multilaterale og plurilaterale handelsforhandlinger, ble den tidligere oppnådd gjennom Indias National Foreign Trade Policy (NFTP) som vedtas hvert femte år, og utvidet med årlige kosttilskudd for å strømline politikken og derved utvikle seg en mer omfattende og bedre handelskapasitet. En komplementaritet mellom disse to aspektene er derfor avgjørende. Men i det siste har planlegging og administrasjon av politiske virkemidler under NFTP ofte tatt sitt eget kurs uten grundig vurdering av de sektorielle behovene som får fortrinnsrett til markedsadgang gjennom handelsavtaler. Nylige studier utført av CUTS International tyder på at India har stort handelspotensial med sine naboland i mange sektorer og produkter. Imidlertid er de fleste av disse produktene ikke inkludert i listen over fokusmarkeder og fokusprodukter valgt under Indias nåværende NFTP. 1 For å styrke NFTPs virkemåte er det faktisk et behov for bedre samordning mellom NFTP og andre innenrikspolitikker, herunder med statlige myndigheter. Mer oppmerksomhet må fokuseres på grensesnittet mellom handel og andre politikker som konkurranse, standarder, offentlige anskaffelser og produksjon for å sikre politikkens sammenheng. Incidenter som når produkter med høy import etterspørsel i land som India har formelle handelsavtaler med, ikke mottar assistanse som fokusprodukter, reflekterer mangel på politisk sammenheng med andre offentlige strategier. Her ligger en av de store utfordringene og mulighetene som Indias nye regjering må takle. Instrumenter som påvirker handelsprestasjonen kan deles inn i tre kategorier: a) ordninger som vedrører utvikling av produksjonskapasitet i landene b) reduksjon av handelsutgifter som muliggjør bevegelse av utgangene til disse produktive operasjonene over landegrensene 2 og ) eksportfremmende aktiviteter som inkluderer å identifisere den formelle eksportprosessen, identifisere potensielle markeder i utlandet etter å ha inngått frihandelsavtaler, studere sin spesifikke etterspørselsprofil og finne bestemte forretningspartnere. 3 En strategisk og omfattende utenrikshandelspolitikk som inkorporerer disse tre funksjonene, vil spille en avgjørende rolle for å oppnå Indias nasjonale mål i løpet av de neste fem årene. I de siste årene har CUTS International vært engasjert i forskning som har gitt anledning til å fungere som en kanal som knytter de som rammer NFTP til de som er berørt av den. Indias nåværende nasjonal handelspolitikkprosess har en tendens til å være sentralisert, og likevel finnes det ingen etablerte kommunikasjonskanaler mellom greskebegunstigede og politimenn. Under vår forskning identifiserte vi fem prioriterte områder som den innkommende regjeringen må ta opp for å maksimere fordelene fra Indias NFTP i de kommende årene: (i) inklusivitet med hensyn til små og mellomstore bedrifter som store støttemodtagere ii) koordinering med eksterne handelsforhandlinger (iii) sammenhenger mellom NFTP og FDI-politikk (iv) NFTPs rolle i å utforske og styrke deltakelsen av indiske forretningsenheter i regionalglobal verdikjeder og (v) NFTPs rolle i innenrikspolitikk og regulatoriske reformer for bedre økonomisk styresett. 4 I ndias Utenrikshandelspolitikk 2009-14 ble formulert med et mål om å doble Indias eksport av varer og tjenester innen 2014, samtidig som det sikter på å fordoble Indias andel i verdenshandelen innen 2020. 5 NFTP 2009-14 og årlige kosttilskudd inneholder flere slike Spesielt målrettede ordninger, skreddersydd for å bruke handelsutvidelse i arbeidsintensiv varesektor som et instrument for sysselsetting. Disse målene var ment å oppnås gjennom bruk av skatteincitamenter, som gir full refusjon av indirekte skatter og avgifter, institusjonelle tiltak, endring i prosedyrer, økt markedsadgang rundt om i verden, diversifisering av eksportmarkeder og forbedring av infrastruktur for å redusere transaksjonskostnadene. Politikken manglet imidlertid visse støttende funksjoner som ville ha gjort det lettere å inkludere og få tilgang til et større antall interessenter. Gjennomføringen av slike ordninger manglet ofte inklusivitet, noe som resulterte i at små og mellomstore operatører og bedrifter (SMB) ofte ikke har tilgang til fordelene. En av de store utfordringene som små og mellomstore bedrifter står overfor, særlig i informell sektor, er mangel på både bevissthet og forståelse av hvordan man skal operere i det internasjonale forretningsmiljøet. I utviklingsland som India er interessenter på grøntområdene ofte uvitende om de ulike støtteordninger som tilbys av egne regjeringer. For å skape et mer inkluderende NFTP må det derfor etableres tiltak for å sikre økt bevissthet om NFTPs ordninger og politiske virkemidler av interessenter på lokal nivå. Det er avgjørende å sikre en inkluderende NFTP, og i visse tilfeller ta hensyn til interessekonflikten som visse interessenter står overfor. De ulike partiets interesser må tas i betraktning mens du vurderer NFTP og foreslår endringer. Dette krever større innsats for å øke samspillet med subnasjonale aktører, for eksempel statsregeringene, i implementeringen av Indias NFTP. Inter-State Trade Council, blant annet, kan spille en nøkkelrolle for å sikre en kontinuerlig dialog mellom statlige myndigheter og unions territorier. Revitalisering av slike grupper kan spille en nødvendig og nøkkelrolle i å rådgive Indias regjering om tiltak for å gi et mulig internasjonal handelsmiljø i selve staterne. Dette vil gi et rammeverk for at statene skal være partnere i internasjonal handel og eksportarbeid. 6 Statlige WTO-celler kan også styrkes for å skape bevissthet om subnasjonale aktører om Indias handelspolitikk og andre relaterte forhold. For det andre viser en undersøkelse av de siste trendene mot det som er kjent som mega-regionale handelsavtaler at fremvoksende land, inkludert India, befinner seg utelukket fra disse forhandlingene. Selv om det har vært mye spekulasjon om hvorfor medlemmene ble utelatt, må disse landene likevel anta en proaktiv tilnærming til å håndtere dette nåværende skiftet for å unngå tilbakeslag av utelukkelse som omdirigering av handel, samt etablering av internasjonale handelsregler utenfor WTO. Med tanke på sine nasjonale interesser er det avgjørende for India å fortsette med mandatet for å forhandle handelsavtaler på multilateralt og bilateralt og regionalt nivå. Det er behov for å gjenopplive og utvide mandatet til organer som den (nå avslørte) nasjonale rådgivende komiteen for internasjonal handel for å bidra til å gjennomføre periodiske vurderinger av virkningen av handelsavtaler på den indiske økonomien. Det er nok bevis for å vise at Indias nåværende handelsavtaler ikke klarer å utnytte sin kjernekompetanse. Derfor, fremover, er det nødvendig med mekanismer for å gjennomføre bærekraftig konsekvensanalyser for å forstå økonomisk, sosial og miljømessig bærekraft i fremtidige handelsavtaler for å utvikle Indias forhandlingsstillinger. Det er viktig å justere Indias utenrikshandelspolitikk med FDI-politikken i lys av betydelige bakover og fremoverforbindelser som eksisterer mellom handelsrelaterte sektorer og FDI. Gitt Indias posisjon langs utviklingsbanen, er hun klar til å ikke bare ha nytte av effektivitetssøkende FDI som søker å lokalisere produksjonsprosessen i lavprisregioner, men også markedsøkende FDI. Selv om NFTP faktisk har åpnet opp enkelte sektorer, har dette målet ikke blitt reflektert på samme måte i Indias FDI-politikk og har dermed resultert i suboptimal utnyttelse av denne politikken. På grunn av at selskapene ikke bare produserer sine produksjonsprosesser, men også deres forretningsfunksjoner, er det en økning i FDI-strømmer som er rettet mot tertiære sektorer i stedet for bare sekundære sektorer. Gitt Indias styrke i denne sektoren, kan en FDI-politikk som inkorporerer Indias komparative fordel i dette området, øke eksportkonkurransen. Å tiltrekke FDI til klyngeutvikling eller økonomiske korridorer kan også fungere for å tilpasse Indias NFTP - og FDI-politikk. F a, globale verdikjeder (GVCer) forblir et område som India ikke har tilstrekkelig utforsket. Det har vært liten overveielse om hvordan politikk og instrumenter som finnes i NFTP kan brukes til å lette deltakelsen av forretningsenheter i både regionale verdikjeder og GVC. GVCs oppstod først som regionale forsyningskjeder i Øst-Asia, med japanske investorer som tok ledelsen. Denne fragmenteringen av produksjonen forbedret kostnadskonkurransen til sluttproduktene som da kunne konkurrere med produkter fra andre utviklede land. Over tid flyttet multinasjonale selskaper fra andre utviklede land til regionen for å forbedre kostnadskonkurransen. Hva som oppstod av dette fenomenet, var GVCer med produksjon spredt over land, regioner og kontinenter, og samlet kostnadsfordeler for å bli globalt konkurransedyktige. 7 Mens India er et av verdens 25 eksporterende land, har det en av de laveste utenlandske verdiskapningsandelene på bare ti prosent og den laveste prisen på GVC-deltakelse. 8 NFTP kan spille en nøkkelrolle i å utforske og styrke deltakelsen av indiske forretningsenheter i både regionale og globale verdikjeder for å kunne utnytte det store potensialet for vekst på dette området. Sist, NFTP må spille en rolle i innenrikspolitikk og regulatoriske reformer for bedre økonomisk styring. Mens en rekke utviklede land har brukt sine utenrikshandelspolitiske virkemidler for å forbedre den generelle innenlandske økonomiske styringen, er i India ofte nærmet som en selvstendig politikk. Sammenheng mellom NFTP og andre store makroøkonomiske politikk er avgjørende for innenrikspolitikk og regulatoriske reformer for å sikre komplementaritet mellom alle store makroøkonomiske politikk. I ndias produksjonspolitikk er et eksempel på et makroøkonomisk initiativ som ble foretatt av regjeringen for å øke andelen produksjon fra nåværende nivå på 15 prosent til 25 prosent av BNP innen 2025. Imidlertid vil bedre sammenheng med NFTP bidra til å forbedre sektorene bidrar til BNP-vekst som har stått stille de siste årene. Tilsvarende, selv om de gjeldende offentlige anskaffelsesreglene følger ikke-diskrimineringsprinsippet, som er i tråd med Indias forpliktelse i WTO, ville en gjennomsiktig, konkurransedyktig og rettferdig offentlig innkjøpspolitikk sikre bedre markedsadgang og gjensidighet for innenlandske leverandører å venture inn i andre offentlige innkjøpsmarkeder. Institusjonelle og makroøkonomiske reformer, som søker å forbedre næringslivet og gi et bedre grunnlag for økonomien til å generere vekst og konkurranseevne, må sikre at selskapene kan utnytte tilpasning av handelsmuligheter. 9 Den andre av Indias tosidige tilnærming til handelsfremme oppnås ved sitt engasjement i multilaterale samt fortrinnsrettede og plurilaterale handelsforhandlinger. Effektiviteten til en forsvarlig innenrikspolitikk forbedres dersom den ledsages av en sammenhengende ekstern strategi som gjør det mulig å utnytte fordelene ved det internasjonale handelssystemet. Mens India i utgangspunktet fulgte en lukket økonomisk politikk, etter økonomiske reformer, har Indias deltakelse i den globale økonomiske arena blitt enormt økende. Etter å ha liberalisert sin økonomi og inngått WTO i 1994, er India en hovedperson i det multilaterale handelssystemet. Men som det globale landskapet har endret seg med en spredning av preferansehandelsavtaler, har India også i økende grad begynt å delta i disse preferansehandelsavtalen. Til dels var dette et speil for en global trend etter problemene med Doha-runden. Men også suksessen til Indias første FTA med Sri Lanka i 1999 førte til en ny holdning til samhandling med sine handelspartnere og det globale handelssystemet som helhet. I dag har India signert om lag 15 PTA, og mange flere er i gang. Uansett er India fortsatt utelukket fra de store mega-regionale handelsavtalen som blir en fremtredende funksjon i dagens handelsmiljø. Disse frihandelsavtalen kan utgjøre en trussel mot den økonomiske sikkerheten. Indias forfølgelse av sin egen mega-regionale handelsavtale, nemlig RCEP-avtalen (Regional Economic Economic Partnership Agreement), er et unikt trekk for å motvirke de negative virkninger som kan stammer fra disse frihandelsavtalen, samt etablere den som en regional makt. Fordelene med denne handelsavtalen er enorme. Det gir en mulighet for India til å ytterligere integrere seg i regionale produksjonsnett, konsolidere overlappende frihandelsavtaler innenfor regionen og dermed øke handels - og utviklingsmulighetene i regionen og muliggjøre kongruens med utseendet i Look East. Indias utenrikshandelspolitikk må også huske på strategiske og sikkerhetsinteresser. For å kunne spille en rolle i forhold til sin størrelse og potensial, må India styrke alle deler av statens makt, ikke bare økonomisk, men også militær. India må også sørge for at det følger en strategisk handelspolitikk med hensyn til å gi sektorspesifikk markedsadgang til noen av sine kritiske handelspartnere, fra hvem den kan sikre nye og muligens doble teknologier for innfødt forsvarsproduksjon. Over en periode kan en slik strategisk handelspolitikk hjelpe landet med å utvikle et militær-industrielt kompleks, generere sysselsettingsmuligheter og sikre en bedre handelsbalanse. Mens India forblir en av de høyeste sluttbrukerne av forsvarsutstyr, et land med verdens tredje største bassenger av teknisk arbeidskraft og vitenskapelig talent, og med en oversikt over innfødte utmerkelser i høyteknologiske teknologier av rom, atomkraft, informasjonsteknologi, det er fortsatt avhengig av utenlandske kilder for å møte 70 prosent av forsvarsbehovet. 10 Samtidig må den få sin handling sammen på en Nasjonal Offset Authority under en hel-statslig tilnærming for å kunne fange tversektorielle avtaler når man forhandler med leverandører av utenlandsk forsvarsutstyr. Jeg n for å effektivt takle konkrete utviklingsproblemer, Indias NFTP krever en helhetlig tilnærming. I strid med landets generelle nasjonale interesse kan myndigheter ikke fungere som separate enheter. En hel-av-statslig tilnærming krever komplisert koordinering for optimale resultater. Denne metoden er utformet for å etablere en felles tilnærming og forståelse for problemløsning i det som ofte kalles politikksamhold. For å sikre denne samordnede tilnærmingen i utformingen og gjennomføringen av Indias handelspolitikk, herunder forhandlinger om handelsavtaler, må handelsdepartementet, Institutt for inntekter og utenriksdepartementet arbeide sammen. Det mellomstatlige handelsråd og statlige WTO-celler vil også trenge å bli effektivt integrert i politisk formulering for å sikre økt engasjement med statsregeringer, og bedre politisk innkjøp for Indias handelspolitikk. For å lykkes med å navigere i den internasjonale handelsarenaen, må Indias nye regjering påpeke å ta opp de fem hullene som beskrevet ovenfor. En inkluderende NFTP som ikke er utformet som en selvstendig politikk, men som er strategisk integrert i alle aspekter av indisk utenrikspolitikk, har potensial til å hjelpe India med å oppnå både sine nasjonale og internasjonale mål. Siden Indias rolle i den globale økonomien fortsetter å vokse, øker muligheten for å skaffe seg flere fordeler fra den internasjonale arenaen for å oppnå sine innenlandske mål, og en velbalansert NFTP kan bidra til å nå dette målet. Det er avgjørende at den neste utenrikshandelspolitikken (2014-19) ikke bare inneholder et utvalg av politiske virkemidler som er i stand til å tilpasses makroøkonomiske sjokk og krusningseffekter fra ytre økonomier, men også instrumenter som fungerer sømløst med andre innenlandske makroøkonomiske politikker å fungere som et velferdsinducerende politisk instrument. 11 1. CUTS, Grassroots Nå ut av National Foreign Trade Policy: Bevis fra indiske stater. Tilgjengelig på: cuts-citee. orgpdfGrassrootsReachoutofForeignTradePolicy. pdf, 2012 2. Handelsutgifter kan defineres som kostnadene som oppstår ved å skaffe varer til sluttbrukeren, bortsett fra den marginale kostnaden ved å produsere varene. Handelsrelaterte problemer omfatter tariffer, ikke-tariffbelastninger, transportkostnader, frakt og tidskostnader. 3. O. Cadot, et al., Hvor skal du bruke den neste millionen som bruker konsekvensanalyse til handelshjelp. Tilgjengelig på: voxeu. orgsitesdefaultfilesfilenextmillionWB. pdf 4. CUTS. Utvikling Dimensjoner av Indias National Foreign Trade Policy. Tilgjengelig på: cuts-citee. orgNFTP, 2013. 5. Strategi for fordobling av eksport i de neste tre årene (2011-12 til 2013-14), Indias regering, Næringsdepartementet, Næringsdepartementet, Handelsdepartementet. Tilgjengelig på: commerce. nic. inannStrategyPaper. pdf, åpnet 12.12.2013. 6. Indiens regjering (DGFT), Konstitusjon av Inter-State Trade Council. Tilgjengelig på: dgft. gov. inexim2000istcouncil. pdf 7. R. Banga, måleverdi i globale verdikjeder, UNCTAD. Tilgjengelig på: unctad. orgenPublicationsLibraryecidc2013misc1bp8.pdf 8. UNCTAD, globale verdikjeder og utvikling, investering og verdiskapende handel i den globale økonomien. Tilgjengelig på: unctad. orgenpublicationslibrarydiae2013d1en. pdf 9. A. Rodriguez-Clare, Koordineringsfeil, Klynger og Mikroøkonomiske Intervensjoner, Inter-American Development Bank, Working Paper Number 544, 2005. 10. Vifindia. orgarticle2012february06India-s-Defense-Production-and - Research-Need-for-Transformational-up-gradering 11. CUTS, Utvikling Dimensjoner av Indias National Foreign Trade Policy, Tilgjengelig på: cuts-citee. orgNFTP, 2013.MT4 Robo plugin er lansert. ring 9142227173 for detaljer. Hemmeligheten bak en vellykket handel er et godt risikobesvar. Hvis du ignorerer dette, vil du sikkert miste. Det bryr seg ikke, hvilket flott diagram eller handelsstrategi du bruker. De fleste kartleverandører og tipsleverandører ignorerer RRR. Resultat. ja. du vet det. Følelse er den største handelens fiende. Bruk Auto Trading-programvare. og se forskjellen. Hva er Robotic Trading System Robotic trading system også referert til som algo trading, automatisk handel, algoritmisk handel eller automatisk handel eksekutor, tillate handelsmenn å gå inn og ut av handel uten menneskelig inngrep basert på enkle eller komplekse forhold. De fleste av de robotiske handelssystemene krevde en kartleggingsprogramvare med sanntidsdata, Trade executor plugin og megler trading terminal. Alt du trenger å gjøre er å aktivere en strategi i kartleggingsprogramvaren og kjøre robotic trade plugin. den vil løpe til du deaktiverer den. Du kan overvåke ytelsen din når som helst og gjøre endringer i sanntid etter behov. Det første innen robothandel er å skape en handelsstrategi. Strategien kan bevege gjennomsnittlig crossover, pivot level break, åpningsområde breakout (ORB) eller oscillatorrelaterte strategier. for eksempel: hvis din strategi er 20-5 flytte gjennomsnittlig crossover. når 5 periode glidende gjennomsnitt krysser 20 år, beveger gjennomsnittet i oppadgående retning, vil en kjøpstilstand forekomme, og robot handelsprogramvare vil legge inn en kjøpsordre til handelsterminalen din. Basert på din exitstrategi, vil det bestille gevinst eller utgang når stoppet tap treffer. For eksempel hvis kjøpesummen din er 7700. Målet er 7750 og slutte tapet er 7680. Etter at kjøpesignalet er fullført, vil robo-aktøren overvåke diagrammet for 7750 eller 7680 for å gå ut av den lange posisjonen. For å gjøre komplekse handelsstrategier, bør du ha god kjennskap til teknisk analyse og programmeringsferdigheter, eller du kan abonnere fra en ekspert. 95 Traders mister sin kapital på grunn av følelsesmessig handel. Bruk Robo Trader for å unngå det. REAL ROBO TRADER The Ultimate auto trading programvare. Real and paper trading mode T rade with Unlimited scrip Control switch for long only, short only or longshort only Part quantity profit booking mode. Target 1 and Target 2 profit booking options. Level based trading for pivot, Gann or Fibonacci traders. Xsignal-YScrip Trading First Time in India Trailing stop loss trailing stop loss on target 1 hit Stop lossentry (at Target 1) reverse on stop loss Set active daily profitloss scrip wised risk management Trade notification by sound or email. VPS (Virtual Private Server) facility on demand. Multi-User robo on demand (for brokers amp sub-brokers) Suitable for any Amibroker AFL Excel based strategy executer MultyScript basket trading New Option strategy automation First time in India Lowest monthly subscription. Compare our robo with others and then decide. a simple robotic trading AFL it is very simple robotic trding strategy for Creating Complex strategis please Contact realsenseindia or call to 9142227173 Plot( C, Close, ParamColor(Color, colorDefault ), styleNoTitle ParamStyle(Style) GetPriceStyle() ) PlotShapes(IIf(Buy, shapeUpArrow, shapeNone),colorBlue, 0,L, Offset-45) PlotShapes(IIf(Short, shapeDownArrow, shapeNone),colorRed, 0,H, Offset-45) PlotShapes(IIf(Cover, shapeSmallCircle, shapeNone),colorBlue, 0,L, Offset-35) PlotShapes(IIf(Sell, shapeSmallCircle, shapeNone),colorRed, 0,H, Offset35) copy and paste the above code to amibroker along with robotic pluggin and test it. What is the advantage of robotic trading Its reducing your emotions. Emotions have a major roll in our trading success, especially in day trading. It is a perfect alternative to control the emotions. Its preventing from over trade. Most of the traders have this issue. when market is highly volatile, traders will tempt to over trade and it may end with huge loss. Maintaining discipline. It is an another enemy of the trader. late entry, changing the stop loss, waiting for more profit etc. Improves trading speed. After appearing the buy signal, normally within 3 seconds order will be placed to your terminal. But Manually it may take 10 to 30 seconds. Suitable for any liquid market. Yes, it is suitable for equity trading, Futures amp Options trading, Commodity trading and currency trading. Basket trading. Basket trading is a high probability trading strategy. Especially in intraday. But it is very difficult to execute manually. Robo trading is a perfect choice for basket traders. Consistent Result. It is an another advantage, which is very difficult to achieve in manual trading. What is algorithmic trading or Algo trading This is a new model trading system that utilizes highly advanced mathematical formula to generate the trading decisions in equity and derivative markets. Usually algo trading or robotic trading used by institutional traders due to the heavy volume trading. but now even small traders can also use robotic trading software to avoid emotional trading. robotic trading will help traders to follow the trading rules and discipline. What is Robotic Trading software or Automated Trading Software It is a computer program, which will automatically execute the trade to your broker terminal based on the pre-setted trading strategy. A fully automated Trading System without human intervention. Trades on all signal and track multiple scrips at the same time. Automatic exit on Target and stop Loss. The ideal way to avoid emotional trading. Call-09142227173, 09142227174 for Free Demo. Yahoo messenger id. realsenseindia REAL ROBO TRADER is an interface between Amibroker and NOWNESTODINANGEL DIET Trading platform. whenever a Buy, Sell or Short, Cover signals triggers in charting platform, the signal will send to the NowNest terminal instantly. As per the SEBI guidelines the user will have to monitor and approve the order before sending to the exchange. Step 1.Charting Platform (Amibroker with strategy) (a buy order triggered in the strategy) Step 2. REAL ROBO TRADER Step 3. NowNestODINANGEL DIET Terminal Simple to use interface with drag-n-drop operations . Zero Programming Knowledge is required to use this Trading Plugin. Can be applied to already-live trading system without writing editing any code. The Basic Robo trade software settings. Select the Scrip Parameters. AT: How does XP fit in the market BT: XP is the biggest independent broker in Brazil, we are not attached to any banks. In 2015 we are ranked third in terms of volume in equities and options, and second in terms of number of contracts in futures on the exchange. We have a broker dealer in the US, XP Securities, with two offices: New York is focused on the north-south flow - so foreign clients trading LatAm - and the Miami office is the opposite - Brazilian investors trading US and Europe markets. We trade equities, options and futures. We also have desks for fixed income, security lending, commodities and we are also market makers. We offer all services the institutional and retail clients need. We have an electronic trading desk with two main focus. Connectivity and OMS integrations, trading platforms, colocation and all of the high frequency traders specific demands. Also algo trading strategies that are developed internally by XP. These execution algos are offered to our clients and used by our trading desks. AT: BVMF was actively welcoming HFT. How has that worked out BT: They did many improvements on their technology, in the trading and post-trading environment, along with new policies for HFT discounts. Their partnership with CME brought the new matching engine PUMA and new market data was established - the Unified Market Data Feed. The integration of clearings is an important project on the post-trading aspect. Nifty January futures plunge 5, leaves players guessing if its an outcome an algorithmic trade NEW DELHI: The BSE has tweaked the Base Minimum Capital (BMC) norms for brokers, a move that will ensure that the deposits are maintained with the exchange and not with the clearing corporation. The Base Minimum Capital (BMC) is the deposit maintained by the member of a stock exchange against which no exposure for trades is allowed. It is meant for meeting contingencies in any segment of the exchange and commensurate with the risks that the broker may bring to the system. . all deposits towards BMC will be required to be maintained with exchange, BSE said in a circular. Currently, the BMC is blocked from the collaterals maintained with BSEs clearing corporation, ICCL, (Indian Clearing Corporation Limited (ICCL). The Exchange (BSE), with ICCL, has initiated the process of segregating and taking over the collateral towards BMC from the collaterals maintained with ICCL, it added. In the initial phase, the cash equivalent component of BMC collateral, to the extent possible, will be segregated from the collateral deposits maintained with ICCL and kept separately with the exchange. Any shortfall in BMC collateral taken over by the exchange would be blocked from the collateral deposits of trading member maintained with ICCL. The BSE said trading members would be intimated on the collaterals that have been taken over from ICCL towards BMC. Brokers have been asked to ensure that at the time of renewals of fixed deposits (FDs) and bank guarantees (BGs) given as collateral to the clearing corporation, such amounts (to the extent of the shortfall) are deposited w ith the exchange. Trading Members, whose shortfall in BMC is blocked from the collateral deposits maintained with ICCL, shall ensure at the time of renewing their bank guarantees, fixed deposits with BGs FDs with ICCL or depositing additional collaterals with ICCL, that FDs BGs to the extent of such shortfall is drawn in favour of the BSE and deposited with the exchange, the BSE said. Such Trading Members can also voluntarily deposit FDs BGs with BSE towards BMC and to that extent the BMC will not be blocked at ICCL, it added. According to norms, stock brokers or trading members should maintain a minimum capital of Rs 10 lakh in case of trading of securities are done through their own money rather than customers without using Algo trade . In 2013, capital market regulator Sebi has increased the base minimum capital (BMC) deposit for stock brokers to up to Rs 50 lakh, from a maximum of Rs 10 lakh earlier, especially the ones dealing with algorithmic trading (algo), in order to mitigate risks in the market. MUMBAI: Was it a fat finger error or an algorithmic trade That was the question that brokers were asking themselves after the Nifty futures fell and then dramatically recovered in early trades on Tuesday. At around 9:15 am, the Nifty futures opened for trading at 8422, but fell to 8000 at around 9:55 am and then quickly recovered more than 100 points. A crash in Nifty futures in early trades resulted in margin pressure on those who were trading with a stop loss. Nifty futures of January shed 15.40 lakh contracts in open interest on Tuesday. It looks mostly like an erroneous fat finger to me, a derivative analyst with a foreign broker told Reuters. On October 5, 2012, the Nifty index had crashed 920 points wherein a trader with Mumbai based brokerage Emkay Global was said to have punched the trade. Nifty January futures plunge 5, leaves players guessing if its an outcome an algorithmic trade. Tightening the norms for algorithmic trading, the Securities and Exchange Board of India (SEBI), on Tuesday, made it mandatory for the users to have their systems audited every six months, and increased penalties on errant stock brokers. Algorithmic trading or algo in market parlance refers to orders generated at a super-fast speed by use of advanced mathematical models that involve automated execution of trade. It is mostly used by large institutional investors. It has raised concerns that algo exposes small investors, and the market itself, to possible systemic risks. SEBI first issued guidelines on algo trades in March, 2012, after it witnessed a growing trend of usage of advanced technology for trading in financial instruments. In a circular issued on Tuesday, SEBI said it had decided to review the algo guidelines following representations made by its Technical Advisory Committee, and the new norms would come into effect from May 27. As per the amended guidelines, stock brokers and traders offering algo facility would need to subject their algorithmic trading system to audit every six months so as to ensure compliance with the requirements prescribed by Sebi and the stock exchanges. Such audits would need to be undertaken by a system auditor with relevant certifications. Sebi has also allowed the stock exchanges to impose suitable penalties in case of failure of the stock broker or trading member to take satisfactory corrective action within a time-period specified by the bourses. The regulator has also asked the bourses to periodically review their surveillance arrangements to better detect and investigate market manipulation and market disruptions. Credit Suisse launches algorithmic trading in India ECONOMICTIMES Jun 22, 2009, 10.25pm IST NEW DELHI: Credit Suisses Advanced Execution Services (AES) unit has launched algorithmic trading in Indian equities. With this Credit Suisse clients can now employ a comprehensive range of AES algorithmic trading strategies for Indian equities, being able to trade more efficiently and achieve best execution. Since the formation of the AES group in 2001, the bank has pioneered new technology and brought it to as many markets as possible. In Asia Pacific, Credit Suisse AES became the first foreign broker to launch Direct Market Access (DMA) in Malaysia in January 2008 and followed this up by becoming the first foreign broker to offer DMA in the Indonesian market last August. Credit Suisse AES was also among the first foreign brokers to offer DMA in India in September 2008, the company said. Sophisticated liquidity-seeking algorithms will help deliver better execution to clients trading Indian equities, said Brook Teeter, head of AES Sales for Asia Pacific. Investors will be able to automate their trading strategies and customize the algorithms to serve their objectives. This will help them reduce signaling risk and market impact and to access liquidity at the optimal price. Algorithms have become increasingly popular globally as investors have sought to trade more efficiently and avoid sharp spikes in volatility while minimizing market impact, particularly given the less liquid market conditions prevalent in many markets over the last 18 months. One strategy aimed at minimizing this impact is SNIPER, an aggressive and opportunistic liquidity-seeking algorithm developed by Credit Suisse to pick off liquidity as it becomes available at a target price. Usage of SNIPER has more than doubled during the last 18 months, reflecting many investors desire to achieve rapid execution while markets have been volatile. The AES suite of algorithms also includes traditional algorithmic strategies that seek to divide trading volumes up over time and strategies that seek to trade at the Volume Weighted Average Price of a stock. Additionally, AES offers strategies that seek to minimize implementation shortfall - or the difference between the price at which a client decides to trade and the actual execution cost such as INLINE and other liquidity-seeking strategies like GUERRILLA. March 31, 2012 ET Bureau MUMBAI: The capital market regulator has put checks and balances in place for high-frequency trading. SEBI has issued detailed guidelines asking exchanges to contain possibilities of potential systemic risk caused by the use of sophisticated automated software by brokers to trade on stock exchanges. The regulator said exchanges should ensure that all algorithmic orders, software driven automated order execution engines, are routed through broker servers located in India and have appropriate risk-control mechanism to address the risk emanating from algorithmic orders and trades. SEBI said the minimum order-level risk controls should include a price and quantity limit check. The price quoted by the order shall not violate the price bands defined by the exchange for the security. For securities that do not have price bands, dummy filters shall be brought into effective use to serve as an early warning system to detect sudden surge in prices, SEBI said in a circular posted on its website on Friday. The quantity quoted in the order shall not violate the maximum permissible quantity per order as defined by the exchange for the security. Algorithmic trading or high-frequency trading strategies use mathematical models and powerful computers to order trades at lightning-fast speeds. As opposed to manually punched trades, these trades are faster and so stand to benefit from quick change in prices. The regulator said in the interest of orderly trading and market integrity, exchanges should put in place a system to identify dysfunctional algorithm, which could lead to a runaway situation and take suitable measures, including advising the member, to shut down such algorithms and remove any outstanding orders in the system that have emanated from such dysfunctional algorithms. SEBI also said in exigency, the stock exchange should be in a position to shut down the brokers terminal. At the outset, the regulatory guidelines deal with systemic risk management and do not seem to infringe on a brokers intellectual property, which is great, said Rajesh Baheti, MD, Crosseas Capital Services. a proprietary trader. The regulator said stock brokers desirous of placing orders generated using algorithms should give an undertaking to stock exchanges that they have real-time monitoring systems to identify algorithms that may not behave as expected. Besides, stock brokers should maintain logs of all trading activities to facilitate audit trail. The stock broker shall maintain logs of all trading activities to facilitate audit trail, SEBI said. October 27, 2007 AGENCIES LONDON. Recent market turbulence has tested banks technology and is putting a question mark over whether increasingly popular computer-generated algorithmic trading is suited to volatile conditions. Algorithmic trading where computers make multiple trades in fractions of a second has soared to make up 30 of equity trading volume according to industry analysts AITE group. It is also increasing popular in the 3.2 trillion a day in foreign exchange market. EBS, the biggest interbank venue for foreign exchange trading, says algorithmic trading has doubled from around 15 of its volumes at the start of 2006 to 30 now. But traders say current volatility is showing the limitations of this form of trading, in equities and forex. Algorithmic trading works by taking historical moves to predict what will happen in the future, said Lee Ferridge, senior proprietary trader at Rabobank. When market moves bear little resemblance to what has happened in the past all types of model will struggle. This certainly appears to be the case for Morgan Stanley who reported a 480 million loss in the third quarter from the banks in-house equities trading desk that employed computer generated models to drive returns. Hedge funds using algo are also likely to have been hit. The Hennessee Hedge Fund Index fell 0.96 in August compared with an 10.16 increase for the year as a whole. Performance was particularly bad for portfolios employing algorithmic models. said Mehraj Mattoo, global head of alternative investment strategies at Commerzbank Corporates and Markets. The losses were caused by sharp moves causing many of the models to trigger sell orders on the same securities at the same time, causing a vicious downward spiral. In some cases high degrees of leverage caused further magnification of losses. The most aggressive risk takers appear to have tried to avoid this kind of loss by pulling out of algorithmic trading when markets were at their most choppy on August 16. A lot of the high frequency guys like hedge funds and the proprietary trading platforms at banks switched off their engines until the worst of the volatility receded, said a source at a major trading platform. When the crunch came, those with the most at stake pulled in their horns and reverted to more traditional means of trading. This may have been because the technology was simply not up to the job of dealing with the immense volume of tickets, say bank sources. Banks have had to deal with up to double the number of tickets per day they are used to and this is stretching their technological capabilities, said a head of electronic trading at a major global bank. The sheer volume is testing banks ability to process and settle the trades and to manage risk positions. If they are approaching the end of a cycle in technology investment their trading engines will start to creak. The big moves in currencies-with the New Zealand dollar losing almost 10 against the yen in the week to August 17, for example-helped push average daily trading volumes for August on Icaps EBS and fixed income platform BrokerTec to 945 billion, up more than 50 on the previous year. Volatile markets are also making the short term strategies that algorithmic programmes employ underperform, analysts reckon. The current large daily moves in currencies are meaning that it is the longer term position takers that are those that are making money, said Geoff Kendrick, currency strategist at Westpac. Those looking on an intra-day basis are having to step down for the moment. May 17, 2011 Shailesh Menon MUMBAI: An increasing number of broking firms in India are offering algorithmic trading to lure large institutional investors. Most big broking firms have updated their trading software to enable algorithmic trading that allows investors to obtain the best possible price without significantly affecting a stocks price and raising purchasing costs. About 18 of total trades on Indian stock exchanges are done through algorithmic commands. This compares with about 60 of the overall trades in Hong Kong and Singapore markets that are done using algorithmic strategies, according to exchange sources. All leading funds use algorithms to increase their trade impact. Faster order execution has become important as returns are now generated playing price volatility, said the head of investments of a fund house. Algo trading involves use of advanced mathematical models to make transaction decisions in financial markets. It helps high-volume investors to place larger orders without disturbing the stock price. Large blocks of shares are usually purchased by dividing the large share block into smaller lots and allowing complex algorithms to decide when the smaller blocks are to be purchased. More than 150 broking firms in India have started using algorithms, according to a report from business consultancy firm Celent. Of these, 1015 have proprietary algos for strategy and trade execution exclusivity. Algo trading is becoming more popular among institutional investors adopting option trading strategies. This, at some level, resulted in option volumes going up by about 81 last year. We offer high-frequency trading to institutional clients selectively, said Rashesh Shah, chairman and chief executive officer, Edelweiss Capital that services about 600 institutional investors. Motilal Oswal, chairman, Motilal Oswal Financial Services. said: Algorithms bring efficiency to stock trading. High-speed trading will be an important offering (to institutional clients) from the side of top brokers. The level of algo trading in equity derivatives, especially index options, is much higher than it is for cash equity. The ease of dealing on a single exchange, namely National Stock Exchange, for equity derivatives, and the lower securities transaction tax on derivatives trading are some of the reasons for this development, the Celent report said. Celent expects technology spending levels to go up to 55 million in 2012 from 45 million in 2011. Algo trading volumes have gone up significantly on Indian bourses. However, most of the volume is happening in top-50 stocks, where liquidity is high. Option-based strategies are also gaining popularity, said Richard Bentley, industry vicepresident (capital markets), Progress Software, a London-based IT company specialising in market technologies. Mr Bentley expects algo trading volumes in India to touch 50 in the next five years. October 26, 2010 Apurv Gupta. ET Bureau MUMBAI: Algorithmic trading in shares listed on Indian stock exchanges could account for 30 of the overall cash market volumes by 2012, compared with around 20 at present, according to US-based consulting firm Celent, citing liquid stock exchanges, sophisticated technology and connectivity as the enabling factors. Algorithmic trading also commonly known as programmed trading entails the use of a pre-written software code to execute transactions, without manual intervention. They are of two types: execution and situational. Execution algorithms minimise the impact cost while executing large orders by spreading them through the day, with price and volume specifications. Situational algorithms are more sophisticated and triggered when certain conditions are fulfilled. For instance, a complex algorithm could generate a buy order depending on a combination of moves in stock price, index level and currency rate. India represents an excellent opportunity for algorithmic (quantitative or systematic) traders due to the confluence of several factors: a supportive legal and regulatory framework, well-established and liquid stock exchanges, sophisticated technology and connectivity to the exchanges, presence of all major banks and broking firms, abundance of people with relevant knowledge and experience. and limited competition in the space, says the Celent report. titled, Electronic Trading in Asia-Pacific. A Market by Market Update on the Dynamic Region . According to the Celent report. algorithmic trading in five of Asias leading markets Singapore. Hong Kong, Japan, Australia. and India has seen a sharp rise in the past couple of years. Celent expects that within three years, these markets will have caught up with the European market in terms of volumes of algorithmic trading and high frequency trading ( HFT). For instance, in Singapore, the introduction of ADR trading was accompanied by tax exemptions to encourage market makers to participate. Similarly, there are rebates for options trading in Hong Kong. In the case of India, the report says that adoption of new technology has been gradual compared with some of its peers in Asia, and this trend could continue. The tight spreads (difference between bid and ask prices), low visible liquidity on the bid and offer. and high trade rate require a lot of effort and skill to execute a good trade, Sensex 137 ptssays the report, adding that the imposition of securities transaction tax has reduced the prospects for arbitrageurs and high-frequency traders, and impacted algorithmic trading to some extent. November 29, 2011 PTI MUMBAI: Capital markets regulator Sebi today ruled out a ban on algorithmic trading products, even though it said is worried by the rapid adoption of these tools and called for appropriate risk management systems to be put in place by market players using them. Sebi is not looking at banning these products, Sebi Chairman U K Sinha told reporters on the sidelines of a CII meet on capital markets here, though he added, But we are worried. NEWS The market regulator is slated to conduct a review of its risk management system in the near future and a ban on algorithmic trading products was apprehended by certain quarters following a technical glitch that resulted in the cancellation of all derivatives deals on the BSE during Muhurat trade on Diwali (October 26). Sebi had said it would do a thorough review of the risk management system in algorithmic trading to prevent a repetition of such incidents. In this regard, Sinha clarified that stakeholders views will be taken on board. We will consult all the stakeholders before taking a decision. Though Sebi is yet to come up with a risk management system for these products, we want all the players to have their own risk management systems in place, Sinha said. Algorithmic trading systems, or high frequency trading systems, use highly advanced mathematical models to make transaction decisions. This highly quantitative trading model employs computerised algorithms to analyse incoming market data and implement proprietary trading strategies wherein large quantities of shares are purchased by dividing them into smaller lots and allowing the complex algorithms to decide when the smaller blocks are to be purchased. Use of these products has been gone up significantly in domestic markets in the last three years. Joining Sinha, BSE Managing Director and Chief Executive Madhu Kannan said when he joined the premier exchange two-and-a-half-years ago, Only 5 per cent trades on the BSE used to take place using algo products, but this has now gone up to 25 per cent. Addressing the Association of National Exchange Members of India last week, Sinha had warned that the market regulator would not allow anybody to mess with its system in the backdrop of some members being allegedly involved in manipulation. We have an effective risk management system, but we would not compromise. That is why we are ready to review, he had added. May 21, 2013 PTI MUMBAI: Tightening the norms for algorithmic trading, market regulator Sebi today made it mandatory for the users to have their systems audited every six months and increased penalties on errant stock brokers. Algorithmic trading or algo in market parlance refers to orders generated at a super-fast speed by use of advanced mathematical models that involve automated execution of trade. It is mostly used by large institutional investors and has raised concerns that algo exposes small investors, and the market itself, to possible systemic risks. Sebi first issued guidelines on algo trades in March 2012, after it witnessed a growing trend of usage of advanced technology for trading in financial instruments. In a circular issued today, Sebi said it had decided to review the algo guidelines following representations made by its Technical Advisory Committee and the new norms will come into effect from May 27. As per the amended guidelines, stock brokers and traders offering algo facility would need to subject their algorithmic trading system to audit every six months so as to ensure compliance with the requirements prescribed by Sebi and the stock exchanges. Such audits would need to be undertaken by a system auditor with relevant certifications. Sebi has also allowed the stock exchanges to impose suitable penalties in case of failure of the stock broker or trading member to take satisfactory corrective action within a time-period specified by the bourses. In order to further strengthen surveillance mechanism related to algo trading and prevent market manipulation, stock exchanges are directed to take necessary steps to ensure effective monitoring and surveillance of orders and trades resulting from trading algorithms, Sebi said. The regulator has also asked the bourses to periodically review their surveillance arrangements to better detect and investigate market manipulation and market disruptions. In March last year, Sebi had asked the exchanges to implement a framework of economic disincentives for high daily order-to-trade ratio for orders placed from trading algorithms by prescribing penalties in form of charges to be levied per algo orders at various levels. The penalty rates specified by the stock exchanges have been reviewed and in order to provide sufficient deterrence, stock exchanges are directed to double the existing rates of charges to be levied per algo orders specified in their circularsnotices, Sebi said. The stock exchanges have also been asked to impose an additional penalty in form of suspension of proprietary trading right of the stock brokertrading member for the first trading hour on the next trading day in case a stock broker trading member is penalised for maintaining high daily order-to-trade ratio, if such an entity has been penalised on more than 10 occasions in the previous thirty trading days. Sebi said this step would discourage repetitive instances of high daily order-to-trade ratio. Sebi also said that the deficiencies or issues identified during the audit of trading algorithm or software of brokers would need to be reported to the stock exchanges immediately after the completion of such audits. Further, the stock broker and trading members would need to take immediate corrective actions to rectify such issues or deficiencies. In case of serious deficiencies or issues or failure to take satisfactory corrective action, the broker or trading member would be barred from using the trading software till the time these issues are rectified and a satisfactory system audit report is submitted to the stock exchange. January 23, 2014 PTI MUMBAI: To address the challenges posed by algorithmic or high frequency trading, market regulator Sebi will organise a two-day conference starting January 27. Algorithmic trading or algo in market parlance refers to orders generated at a super-fast speed by use of advanced mathematical models that involve automated execution of trade, and it is mostly used by large institutional investors. The high frequency trading exposes the market to possible systemic risks. The rise of High frequency trading (HFT), a type of algo trading, has raised concerns with regard to its impact on market quality, financial stability and regulatory framework. The Securities and Exchange Board of India (Sebi) is organising its first international research conference from January 27-28 here. The theme of the conference is HFT, Algo Trading and Co-location, according to a statement. During the two-day conference, participants will also discuss issues related to information asymmetry, retailinvestors. HFT in developing countries and technology as an enabler to re-level the field. Academicians, market practitioners, regulators from countries such as the US, Spain, Australia, Canada and Japan, among others, would participate at the event. There is a divide in pool of thoughts over positive impact of HFT and associated risks. Because of its relative novelty and the uncertainty related to many of the trading strategies being used today, the debate over high frequency trading is of contemporary relevance, Sebi said. As both old and new emerging markets continue to become highly digitised, algo trading strategies will constantly advance, it added. Sebi first issued guidelines on algo trading in March 2012, after it witnessed a growing trend of usage of advanced technology for trading in financial instruments. Later in 2013, the regulator tightened the norms related to algo trading. April 11, 2014 Biswajit Baruah. ET Bureau MUMBAI: The obscure world of high-frequency trading (HFT) has come under the spotlight of late after Michael Lewiss latest book Flash Boys: A Wall Street Revolt. In India, too, the revelations in the book have caught the attention of critics, authorities and market players, but that is yet to spark a hue and cry as in the US. This is because such trades account for just a third of the total trading volumes on Indian bourses against the 60-70 per cent in most developed markets in the US and Europe. Volumes under algorithmic trading a type of HFT which was launched in India in 2009, witnessed a spurt initially, but have remained stagnant of late as the regulator frowns on the influence of such trades on the market. In algorithmic trading, a system executes pre-programmed orders based on timing, price, or quantity of the order. In most cases, the orders are executed by the computer. As a result, the speed of execution has reduced from milliseconds to microseconds and is expected to move to nanoseconds. The big players in the business in India are said to be foreign investment banks such as JP Morgan, Morgan Stanley, Credit Suisse, and Deutsche Bank. Algorithmic trading has not picked up in India as the awareness about this particulate trading platform is not much among market participants. At this juncture, only select institutional clients and HNIs are using this platform, Sudip Bandyopadhyay, managing director and CEO at Destimoney Securities, said. The algorithmic trading programme is very successful when there is increased volatility in the markets, as our own brokerage algorithmic software is designed like that, he said. Algorithmic trading has opened up faster access to Indian markets for financial institutions across the world. However, better algorithms with mathematically proven strategies that consume liquidity and faster systems with very low latency are the need of the day. Critics said it can cause sudden market crashes and easily mask market manipulation or other illegal activity. In HFT, the objective is to enter and exit frequently and take advantage of daily and intra-day changes. Typically, HFT does not lead to any delivery positions and all transactions are reversed in the same day. In the past few months, foreign institutional investors ( FIIs ) have used the algorithmic trading platform for buying shares . Algorithmic trading gives the best price advantage in the market as the system has the speed advantage, said Raghu Kumar, co-founder at RKSV, a Mumbai-based discount brokerage. September 21, 2014 PTI NEW DELHI: As a liberal tax regime kicks in for overseas investors from next fiscal, the FPIs (Foreign Portfolio Investors) are expected to expand their activities in Indian markets by using the high-frequency trading technology, experts say. High frequency trading, also known as Algorithmic Trading (Algo Trading), refers to the automated execution of trades on the stock markets through pre-programmed software platforms installed on servers. The same is becoming popular in India. While presently only a few Foreign Portfolio Investors (FPIs) have adopted algo-trading, many more a expected to take it up, leading consultancy PwC said. To improve ease of doing business and for better regulatory oversight, the Indian capital markets regulator Sebi created a new FPI category after pooling together different categories of overseas investors such as FIIs, their sub-accounts and Qualified Foreign Investors (QFIs). According to PwC, there has been low FPI participation in algo trades so far, mainly because of the ambiguity related to characterisation of their income as business income or capital gains. If their income is treated as business income, FPIs could have been taxable at 40 per cent on a net income basis, PwC Executive Director Suresh Swamy said. Due to high volume of transactions usually carried on by algo-funds, there was a possibility of that their income would be characterised as business income, Swamy added. However, with government announcement in budget 2014-15 that the income arising from transactions conducted by FPIs would be classified as capital gains with effect from April 1, 2015, many more investors are likely to take to algo-trading. This means FPIs long term capital gains earned on transfer of securities on which securities transaction tax is paid will be exempt from tax, Swamy said. While short term capital gains are taxable at 15 per cent, he added. As per Sebis latest data there are nearly 8,400 registered FPIs in the country. The FPIs have poured in a total of USD 204.64 billion so far into the economy and are one of the largest drivers of Indian stock markets. According to the government, necessary amendments to the norms for treating FPI income as capital gains would be made with effect from April 1, 2015. Under the proposed amendments, any security held by FPI which would be treated as capital asset only so that any income arising from transfer of such security by FPI would be in the nature of capital gain. There is no tax on long term capital gains while short term capital gains are taxable at the rate of 15 per cent. September 16, 2014 Nishanth Vasudevan. ET Bureau I If the lives of start-up founders are about sweat, blood and tears, no one told the trio at Mumbai-based discount broking firm RKSV. To be honest, we have had a considerably smooth ride, says Raghu Kumar, one of the three promoters, briefly describing in a matter-of-fact tone their two-year journey as entrepreneurs. He means it. NEWS Rather, he prefers to let the numbers speak. Within two years of starting operations and largely operating in a dull market, RKSV is now clocking daily turnover of Rs 4,000 crore. Thats about 1.3 per cent of total turnover of NSE, in a business where even the leaders are at 5-6 per cent. For the US-bred trio Raghu, brother Ravi and their friend Shrinivas Viswanath it was a move by the Indian capital market regulator to allow algorithmic trading that encouraged them to dip their toes in Indian waters. And when the Securities and Exchange Board of India allowed the direct market access (DMA) facility in April 2008, which gives investors direct access to a stock exchanges trading system, they decided to put in both their feet. Prior to 2009, their only connection with India was the occasional visit to meet relatives. DMA was the reason we came to India. We saw a lot of opportunities and wanted to explore them, says Raghu, a University of Illinois graduate in actuarial science and finance. The concept of algorithmic, or high frequency, trading was not alien to them. Before coming to India, the brothers were active in the US foreign exchange markets between 2006 and 2008. But, in October 2008, they had to wind up after the global financial markets imploded trading opportunities had dried up, liquidity had shrunk and spreads had widened enough. By then, however, they made a killing of about 2 million, giving them the self-belief and the capital to explore other business ideas. In 2009, Raghu and Ravi, along with Viswanath, a computer engineer in New York, shifted base to India. Although the Indian markets were alien to them, funding a venture was never a problem. Raghu and Ravi spent the first two years trading with their own money, which helped them gauge the pulse of the market here. Meanwhile, they secured a membership to the Bombay Stock Exchange, which had slashed its fees significantly to rope in more members. After making good money in the two years in proprietary trading, they saw stockbroking as a natural progression. But to set up shop in India, at the time they did, was a contrarian call. Disappointed by the previous governments tardy attitude towards business and economic policies, business confidence in India had hit its nadir. Foreign investors were wary and several nonresident Indians (NRIs) were returning to countries where they held passports. The broking industry was bleeding too. While competition in institutional broking business was fierce, retail investors had deserted the markets. But there was still a segment of market participants that was underserved: traders, for whom high brokerage costs was making it difficult to make money. We realised there were many traders who did not have cheaper options to trade, says Kumar. What shocked us was the number of branches that retail brokerages had, which is not the case in the US. It did not take too much time for RKSVs business to pick up as its relatively-older rival Zerodha had taken the plunge by then. Although there was little that RKSV could do to hold an edge in terms of technology, it managed to attract clients by launching the unlimited trading model, where traders can transact for as many times at a fixed cost. Currently, RKSV has about 20,000 clients. They are serviced by about 50 employees from its office in Mumbais emerging financial services hub, Bandra-Kurla Complex. Raghu said the firm is looking to double its client base to about 40,000 in 2014-15. Thats not bad for a two-year-old, first-generation firm. STARTED: 2012 (retail trading) FOUNDERS: Raghu Kumar, Ravi Kumar, Shrinivas Viswanath DAILY TRADING TURNOVER: Rs 4,000 crore REVENUES: Not disclosed April 11, 2014 Ashutosh R Shyam. ET Bureau The US securities market regulator, Securities amp ExchangeCommission (SEC), allowed the first high-frequency trade (HFT) in 1998. Now, such trades account for almost 60-70 per cent of equity volumes in the US. A new book by Michael Lewis, called Flash Boys, claims the US stock market is rigged in favour of HFTs, prompting regulators to take a closer look at the trades. ET decodes high frequency trading, also known as algorithmic trading. What is high frequency trade It is a trade based on computer programming, referred to as algorithm that executes orders in exchange-traded securities swiftly. Unlike a trading order initiated by a trader, an algorithm is designed to process a colossal amount of data in a fraction of a second. The objective of high-frequency trade (HFT) is to boost profitability by executing bulk trades on any trading opportunity available at wafer-thin margin. The success of an HFT trader depends on the speed of the transaction. The average transaction time for HFT now is micro-milli seconds. A milli second is 11,000th of second and a micro second is 11,000,000 of a second. What is a high frequency traders mode of operation On the basis of historical data, a tested pattern is formed to execute numerous trading strategies. The computer programmer writes an algorithm based on many such patterns. Depending on the risk-reward rules set in a computer programme, HFT traders move in and out of traded securities, in a time span ranging from a fraction of a second to a few hours. For instance, on analysing some historical data, a programmer may find that about 70-75 per cent of the time, whenever a particular stock breaks below the 10-day moving average on a weekly basis, it leads to a 5 per cent correction in the stock price. On the basis of this trend, whenever that particular stock breaks below the 10-day moving average on a weekly basis, the computer will automatically initiate a sell order in bulk quantity. In other words, an HFT trader exploits predictable temporary deviation from stable statistical relationship among stocks. Rather than long-term investors, an HFT trader usually competes with other HFT traders. What are the basic rules for an HFT trader The odds of going wrong can be as high six out of 10 times, but profits earned on right trades are many times higher than the loss incurred on wrong trades. As a result, Sharpe ratio, a measure of return adjusted for risk. is significantly higher than the traditional buysell strategy. What is the history of HFT trading US market regulator Securities and Exchange Commission (SEC) allowed the first HFT trade in 1998. Now, almost 60-70 per cent of equity trading volumes in the US is an HFT. According to Bank of England, HFT trades in Europe reached 40 per cent of equity order volumes, and in Asia, it ranges between 5-10 per cent. Getco, Knight Capital, Jump Trading, and Citadel are among the largest HFT trading firms in the US. Why are HFT traders under regulatory lens Globally, market regulators believe HFT traders bring excessive volatility to the markets. and pose serious risks to the financial system. While analysing the reasons for the flash crash that occurred in May 2010, the US SEC concluded in its report that the action of HFT traders contributed to volatility. HFT traders are levied charges for benefiting from the index re-balancing by mutual funds. For instance, on account of market capitalisation adjustment, if a stock is moving in or out of the index, the algorithm provides for a projection of the expected stock price movement on the basis of an institutional order-book leading to really handsome returns. Italy was the first country to introduce a levy of 0.002 per cent on an equity transaction that lasts less than 0.05 seconds. What does an HFT trader bring to markets An HFT trader acts as one of the most important market-makers and brings down the spread between the bid and ask prices. For instance, if the bid price of any security is Rs 100 and ask price Rs 101, the HFT trader will try to place an order at Rs 100.05 for bid and Rs 100.95 for an ask quote. This action leads to the execution of the trade. High frequency trades form just one-third of total volumes in India April 11, 2014 Biswajit Baruah. ET Bureau MUMBAI: The obscure world of high-frequency trading (HFT) has come under the spotlight of late after Michael Lewiss latest book Flash Boys: A Wall Street Revolt. In India, too, the revelations in the book have caught the attention of critics, authorities and market players, but that is yet to spark a hue and cry as in the US. This is because such trades account for just a third of the total trading volumes on Indian bourses against the 60-70 per cent in most developed markets in the US and Europe. Volumes under algorithmic trading a type of HFT which was launched in India in 2009, witnessed a spurt initially, but have remained stagnant of late as the regulator frowns on the influence of such trades on the market. In algorithmic trading, a system executes pre-programmed orders based on timing, price, or quantity of the order. In most cases, the orders are executed by the computer. As a result, the speed of execution has reduced from milliseconds to microseconds and is expected to move to nanoseconds. The big players in the business in India are said to be foreign investment banks such as JP Morgan, Morgan Stanley, Credit Suisse, and Deutsche Bank. Algorithmic trading has not picked up in India as the awareness about this particulate trading platform is not much among market participants. At this juncture, only select institutional clients and HNIs are using this platform, Sudip Bandyopadhyay, managing director and CEO at Destimoney Securities, said. The algorithmic trading programme is very successful when there is increased volatility in the markets, as our own brokerage algorithmic software is designed like that, he said. Algorithmic trading has opened up faster access to Indian markets for financial institutions across the world. However, better algorithms with mathematically proven strategies that consume liquidity and faster systems with very low latency are the need of the day. Critics said it can cause sudden market crashes and easily mask market manipulation or other illegal activity. In HFT, the objective is to enter and exit frequently and take advantage of daily and intra-day changes. Typically, HFT does not lead to any delivery positions and all transactions are reversed in the same day. In the past few months, foreign institutional investors ( FIIs ) have used the algorithmic trading platform for buying shares . Algorithmic trading gives the best price advantage in the market as the system has the speed advantage, said Raghu Kumar, co-founder at RKSV, a Mumbai-based discount brokerage. March 12, 2014 Bloomberg NEW YORK: Growth in high-frequency and algorithmic trading may promote efficiency in the spot-trading foreign exchange market. according to a research paper published by the Federal Reserve Bank of New York. Arbitrage opportunities, or market price differences, occurred in about 1 in every 20 seconds between the euro-dollar, dollar-yen and euro-yen currency pairs during the active part of the trading day during early 2000s, Ernst Schaumburg. a research officer at the New York Fed wrote in a report published on Tuesday, citing EBS data. The discrepancy has declined since about 2004 and has been almost zero since 2008, he said. While other factors may be at play, these data are certainly consistent with a view that the rise in algorithmic and high-frequency trading enhanced market efficiency as measured by the availability and persistence of pricing arbitrage opportunities available in the FX spot market, Schaumburg wrote. High-frequency trading in foreign-exchange markets rose to 25 of the market in 2011 from nearly nonexistent about 14 years ago, according to the report, citing Bank for International Settlements data. The report cited an example using 2007 EBS price quotes, in which an investor could have used 1 billion euros to buy 1.316 billion, then converted the position to 154.2 billion yen, and then finally exchanged it again to Europes common currency, yielding a profit of 120.65 euros per 1 million invested. The so-called round-trip transaction, or triangular arbitrage, doesnt include transaction costs. While this profit may seem small, in efficient markets such arbitrage opportunities ought to be short-lived and few and far between, Schaumburg wrote. Schaumburg couldnt immediately be reached by telephone for comment. January 23, 2014 PTI MUMBAI: To address the challenges posed by algorithmic or high frequency trading, market regulator Sebi will organise a two-day conference starting January 27. Algorithmic trading or algo in market parlance refers to orders generated at a super-fast speed by use of advanced mathematical models that involve automated execution of trade, and it is mostly used by large institutional investors. The high frequency trading exposes the market to possible systemic risks. The rise of High frequency trading (HFT), a type of algo trading, has raised concerns with regard to its impact on market quality, financial stability and regulatory framework. The Securities and Exchange Board of India (Sebi) is organising its first international research conference from January 27-28 here. The theme of the conference is HFT, Algo Trading and Co-location, according to a statement. During the two-day conference, participants will also discuss issues related to information asymmetry, retailinvestors. HFT in developing countries and technology as an enabler to re-level the field. Academicians, market practitioners, regulators from countries such as the US, Spain, Australia, Canada and Japan, among others, would participate at the event. There is a divide in pool of thoughts over positive impact of HFT and associated risks. Because of its relative novelty and the uncertainty related to many of the trading strategies being used today, the debate over high frequency trading is of contemporary relevance, Sebi said. As both old and new emerging markets continue to become highly digitised, algo trading strategies will constantly advance, it added. Sebi first issued guidelines on algo trading in March 2012, after it witnessed a growing trend of usage of advanced technology for trading in financial instruments. Later in 2013, the regulator tightened the norms related to algo trading. January 19, 2014 I have seen The Wolf of Wall Street and dont think very highly of it, though the acting, particularly Leonardo DiCaprios, was very good. Firstly, it was way too long. Secondly, the movie was highly exaggerated. It is hard to believe that the things portrayed in the movie like drinking and doing drugs at work were common in the US even then. It was more an exception rather than the rule. In the past 15 years such stories have been hard to come by even the investment banks that we read about, after the Lehman Brothers collapse, were not on this scale. We need to keep in mind the movie is set in the 1990s when stock markets were not evolved. It was still early days for markets, online trading was nascent and the rules of the game were not established. Fortunately or unfortunately, India was lagging behind developed markets. We opened the economy in 1991 and online trading came to India only in 1994. Markets here have not seen the high point the US has, not even in 2007. India accounts for only 0.5-1 of the global fee income and broking commission pool, while the US accounts for 30-40. Average commissions in India in the early 1990s used to be 3-5, and are today only one-hundredth of that at 0.03-0.05 Algorithmic trading now accounts for 90 of volumes here gone are the rings and the screaming. I still remember the first time I visited the ring at the Bombay Stock Exchange in 1993. I had heard and read a lot about it and it was a surreal experience. It was around 12.30 pm on a really hot day and everyone was sweating and shouting. I could not understand what anyone was saying but people were animatedly buying and selling. The 1990s and early 2000s were marked by long periods of inactivity. For a year after the Harshad Mehta scam, people in brokerages would come in at 10 am and leave at 10.15 am. There was also a lot of free time once again after the dotcom bust. While in the movie, people are really stressed out at work, here the stress was over not having much to do and the fear of losing ones job. In India, 80 of the funds flow is controlled by banks whereas in the US it is only 40-50. Brokers in India never had the kind of money that the movie shows brokers making. Owners of brokerages here couldnt display their wealth the way DiCaprio does in the movie. because there was no wealth here. If the total volume on the markets was Rs 100 crore a day, it was a really big deal. Whenever brokers made some money, they would typically invest in a house. There was no cash flow. I dont remember a single broker whose wealth could be compared to that of an industrialist. We have never had the excesses of Wall Street because the broking community is quite conservative by nature and also because of the rules put in place by the Reserve Bank of India and the Securities and Exchange Board of India. Most of the community was either Gujarati or Marwari, who are fairly traditional even now. I wouldnt say drinking was absent at parties, but it was relatively uncommon. Most brokerages were also family-owned and therefore an extension of their home. The most important day for brokerages used to be and still is, to an extent, Diwali, the day of Muhurat trading, where most of the owners family is present. That is the culture. December 16, 2013 Ram Sahgal. ET Bureau MUMBAI: Concerned by a sharp fall in commodity exchange volumes, regulator Forward Markets Commission (FMC) might announce stronger risk management measures and a few proposals aimed at attracting greater participation in a market hit by the fallout from a newly-introduced transaction tax and the Rs 5,500-crore NSEL crisis. Apart from finalising norms on Settlement Guarantee Fund (SGF), used by exchanges to contain risk of counter party default, the regulator could relax exposure limits for brokers and clients in farm and non-farm futures contracts and automated trading norms to deepen the market, said a commodity exchange official privy to discussions held a few weeks ago. The specific details of these proposals would be finalised early next month, said the official. SGF norms will provide comfort to participants that exchanges have the wherewithal to combat risk. At the same time, to boost trading in derivative contracts in agri contracts and especially those where commodity transaction tax (CTT) has been levied, position limits are proposed to be raised. Also, algo guidelines stipulate an order to trade ratio of 20. that may be relaxed. For instance, said another exchange official, since CTT was levied on all gold contracts in July, many participants shifted from kilo gold contracts to mini (100 gm) and smaller denomination contracts in the metal. The plan is to increase position limits in such contracts, which would to some extent offset the effects of CTT. In algorithmic trading, every 20 orders currently must result in one trade. That ratio would most likely be increased by FMC. The need for SGF norms was felt in light of the NSEL scam, which surfaced in July end. Exchanges have to constitute SGF from 5 of gross revenues each year and base minimum capital paid by brokers to become members of an exchange. While it is refundable to brokers, BMC is that portion of deposit on which brokers do not get any trading exposure. In a market hit by CTT and the NSEL crisis, these measures could add their mite to the fallen turnover, said Suresh Nair, executive director, Admisi Commodities. However, other brokers privy to discussions by the newly constituted risk management group - seized of the SGF and position limits proposals - said final norms on SGF will have to take into account the concern that BMC could be withdrawn in case a broker surrenders membership on an exchange. On algo trades, they said that a lot of attention must be paid on how to stop the algo from placing orders relentlessly, especially in contracts where far months are not too liquid. If, for instance, an algo relentlessly sells a near month liquid contract and buys a far month less liquid contract, it could create artificial scarcity in the far month and also price anomaly. In the fortnight ended November 30, trading volumes on six exchanges led by MCX dipped 65 from a year ago to 2.6 lakh crore. Of this, bullion trade was 1.02 lakh crore, down 72. The markets have fallen drastically from July mainly because of CTT of Rs 10 per lakh on sell side of non-farm and processed commodities and a 5,500-crore payment default on Financial Technologies-owned NSEL, which has dented investor confidence. FT is also the promoter of MCX, Indias largest commex. May 21, 2013 PTI MUMBAI: Tightening the norms for algorithmic trading, market regulator Sebi today made it mandatory for the users to have their systems audited every six months and increased penalties on errant stock brokers. Algorithmic trading or algo in market parlance refers to orders generated at a super-fast speed by use of advanced mathematical models that involve automated execution of trade. It is mostly used by large institutional investors and has raised concerns that algo exposes small investors, and the market itself, to possible systemic risks. Sebi first issued guidelines on algo trades in March 2012, after it witnessed a growing trend of usage of advanced technology for trading in financial instruments. In a circular issued today, Sebi said it had decided to review the algo guidelines following representations made by its Technical Advisory Committee and the new norms will come into effect from May 27. As per the amended guidelines, stock brokers and traders offering algo facility would need to subject their algorithmic trading system to audit every six months so as to ensure compliance with the requirements prescribed by Sebi and the stock exchanges. Such audits would need to be undertaken by a system auditor with relevant certifications. Sebi has also allowed the stock exchanges to impose suitable penalties in case of failure of the stock broker or trading member to take satisfactory corrective action within a time-period specified by the bourses. In order to further strengthen surveillance mechanism related to algo trading and prevent market manipulation, stock exchanges are directed to take necessary steps to ensure effective monitoring and surveillance of orders and trades resulting from trading algorithms, Sebi said. The regulator has also asked the bourses to periodically review their surveillance arrangements to better detect and investigate market manipulation and market disruptions. In March last year, Sebi had asked the exchanges to implement a framework of economic disincentives for high daily order-to-trade ratio for orders placed from trading algorithms by prescribing penalties in form of charges to be levied per algo orders at various levels. The penalty rates specified by the stock exchanges have been reviewed and in order to provide sufficient deterrence, stock exchanges are directed to double the existing rates of charges to be levied per algo orders specified in their circularsnotices, Sebi said. The stock exchanges have also been asked to impose an additional penalty in form of suspension of proprietary trading right of the stock brokertrading member for the first trading hour on the next trading day in case a stock broker trading member is penalised for maintaining high daily order-to-trade ratio, if such an entity has been penalised on more than 10 occasions in the previous thirty trading days. Sebi said this step would discourage repetitive instances of high daily order-to-trade ratio. Sebi also said that the deficiencies or issues identified during the audit of trading algorithm or software of brokers would need to be reported to the stock exchanges immediately after the completion of such audits. Further, the stock broker and trading members would need to take immediate corrective actions to rectify such issues or deficiencies. In case of serious deficiencies or issues or failure to take satisfactory corrective action, the broker or trading member would be barred from using the trading software till the time these issues are rectified and a satisfactory system audit report is submitted to the stock exchange.
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