Revision in Orders Per Second limit for algorithmic trading in Commodity Derivatives Segment of the Stock Exchange
Summary
SEBI has revised the Orders Per Second (OPS) limit for algorithmic trading in the Commodity Derivatives segment to a maximum of 120 OPS. Stock Exchanges are permitted to set this limit and must measure compliance over a rolling five-second period. Any further relaxation beyond 120 OPS requires SEBI approval and specific infrastructure capacity upgrades.
Text
The Stock Exchange shall place a limit (X) on the numbers of orders per second from a particular CTCL ID/ATS User-ID not exceeding one hundred and twenty orders per second. Compliance with the limit “X” so set by a particular CTCL ID/ATS User-ID shall be measured over a rolling period of five seconds... For number of orders exceeding the limit (X) set by the Stock Exchange, the Stock Exchange shall prescribe economic disincentives and inform the same to SEBI. Further, Stock Exchange shall ensure that the limits provided is subject to its ability to handle the load.
The limit on OPS may be further relaxed by the Stock Exchanges based on the increased peak order load observed and corresponding upgrade of infrastructure capacity to ensure that the capacity of trading system of the Stock Exchange remains at least four times the peak order load. The relaxation in limit shall be subject to approval of SEBI.
The circular shall be effective from April 01, 2022.
All other terms and conditions specified in circular no. SEBI/HO/CDMRD/DMP/CIR/P/2016/97 dated September 27, 2016 and SEBI circular no. SEBI/HO/CDMRD/DRMP/CIR/P/2018/60 dated April 03, 2018 shall remain the same.
This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Revision in Orders Per Second limit for algorithmic trading in Commodity Derivatives Segment of the Stock Exchange. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.