So there are some details coming out about potential api regulation. Link above + also some things circulating on telegram.
We don’t have details but it seems to be good on surface. There is mention of people with own developed algos and some pics are suggesting that even algo providers will be given space for black box algos along with transparent ones.
This looks great, but devil is in the details. I really hope that its fair to us.
Dunno if we can give feedback to SEBI like last time. So just writing down what i can think of and perhaps you can give that as feedback if possible.
Self-developed algo
The facility of algo trading shall be provided by the stock broker only after obtaining requisite permission of the stock exchange for each algo, said SEBI.
In the market, many tech savvy investors develop their own algos to place their trades. The regulator has suggested these traders get their algos registered with the exchanges with their help of their brokers. This algo can then be used by the family of these traders. Family for this purpose would mean self, spouse, dependent children and dependent parents, said the paper.
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So we will need to register with exchange via broker. There is nothing mentioned about what details need to be registered, i hope its something simple with fast approval looking for things like background checks / identity / algo high level details. Basically it should just be to get unique tag so that they can monitor orders if needed and the tag will be restricted to work with only my account/family account. This should be black box, there is no need for exchange to know exact algo and micro manage that.
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I hope Zerodha will be quick to implement this and SEBI will give enough time for brokers/traders to implement this. Hoping that i am not forced to move to another broker due to delay ( which has become a pattern for other features - that i dont mind but this is critical for us)
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No static ip restriction for self developed algos. Since orders will be identifiable via tags and tags are restricted to my account, there should be no demand for static ips. Jio/Airtel mobile ips are dynamic, my airtel fiber also has dynamic ip and i like to have mutiple options in case one network goes down.
Lets hope for the best …