Query on future of APIs for traders

Trading
82

  1. There should be a way to update ip address as there can be changes. Perhaps with 1 day delay to avoid it being abused.

  2. Ideally, should be able to have atleast 1 backup static ip. Say 1 cloud and 1 home or 2 home.

83

Dont you think 1 day to update is too late. Basically you are locked out of firing orders programmatically just because the ip address of your connection has changed. IMO you should be allowed to change it manually anytime you want I still cant understand sebi’s stance behind it. Big guys can always pay more for such static ip services and carry on with algorithmic trading. If api traders are not even categorized as algo traders then why should ip restriction be put on them. its like saying people using mobile network for placing orders cant use computer to place orders as they have different ip.

@SpacemanSpiff do update with the solution you find for this ip requirement. I can see few third party vendors that charge 10 usd/month.

84

This probably will happen. Only creating a utility to allow scripting the change isn’t something we’re looking to offer.

Yeah, we haven’t yet decided it will be just 1 IP. May be 1 or may be 2-3 per user. This shouldn’t be a problem.

85

hey Hi @Matti

I’ve recently started using the Kite Connect API, so I hadn’t looked into the API/Algo trading regulations earlier. I’m using the API because my strategy involves around 5 to 7 legs, which need to be executed quickly when signals are triggered—manual order placement is quite tedious.

My strategy is a white-box model, and I operate with a small capital base, placing fewer than 10 orders per second.

Could you please clarify whether my setup falls under API trading or Algo trading as per SEBI’s guidelines? I’m unfamiliar with the specific rules and restrictions in this area, so I’d appreciate it if you could guide me on:

Whether my strategy qualifies as API or Algo trading.
How SEBI’s regulations might affect me.
What steps I need to take to ensure my automated trading remains compliant.

86

API. All Kite Connect users will be API trading, since they’re subject to the ratelimits we impost on them. While the actual “threshold” mentioned in the circular isn’t defined yet, we’re confident this will be around what most brokers ratelimits currently are.

You’ll need to get a static IP for order placement. Nothing else changes.

87

Thanks for your response,
From when? is it applicable with immediate effect?

88

The circular gives time until August 1 for implementation. Some pieces (like defining the actual order threshold above with orders will be considered algo orders, etc.) are yet to be defined. We’ll notify our users before we make changes.

89

okay so till August 1 placing orders wont get affected without static IP. before the deadline we need to get Static IP.

Thank you.

90

If possible, please try to have a way to verify that everything is in compliance before Aug 1 itself. So we don’t face any surprise.
Say we can register the ip and then get some kind of warning if there is issue or an indicator that all is well.

91

Can one family accounts use single ip supoose 3 family member staying in same home

92

That’s the plan.

Hmmm… Haven’t thought about this yet. The circular makes no exceptions for something like this though.

1 Like
93

Please represent these cases to the relevant parties, as you are our only voice. In that case, can I take help from a fintech platform registered with Zerodha to use their IP, as I only use the API to place orders in my family account?

94

Please clarify.
I use Kite connect API only for marketdata, generate 1 min candle etc and signal generation. as of now I dont place any order via API. I place order manually. for this scenario do I need static IP.

Also lets say in future I put 2-3 orders in a day via API. In that case also do I need static IP?

For my current use do I have to do any registration, change etc?

95

I read the new sebi circular, you don’t need a static IP or registration as long as you’re only using the Kite API for market data and signal generation. Even if you place 2–3 orders/day via API in the future, it’s allowed without registration. Registration is only needed if you cross 10 orders/second for your use case, no action is needed right now.

96

Will need static api to order via api even if you send 1 order. Shouldn’t need for data.

97

Sorry for the earlier confusion, as per the latest SEBI/NSE circular, if you automate order placement, a static IP becomes mandatory. Once the new circular goes live.

So for now, you’re fine.

98

I am not sure. but does it mean that even for running kite connect API just for data, one will need static ip?

99

No, you’ll need a static IP for order placement only.

2 Likes
100

I have never used them, but ipv6 static ips on AWS seem to have no cost. They are static by default as long as instance is not terminated.

We have people complaining about added costs on api forum (300pm it seems), it would make sense to allow both ipv4 and ipv6 static address as part of this.

101

Yep, we don’t disallow IPv6.

1 Like