The SEBI vide circular dated March 17, 2022 has revised the Orders Per Second limit for algorithmic trading in Commodity Derivatives Segment of the Stock Exchange. The Stock Exchanges are directed to shall place a limit 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 (i.e., 5X orders for 0th –5th second, 5X orders for 1st-6th second, 5X orders for 2nd to 7th second and so on). 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.
