It will be most likely 10 per second, more than that registration is required, believe they will make registration easy.
yeah its 10 per sec. Would have liked 20 as orders get created/updated in bursts, but anyway…
https://nsearchives.nseindia.com/content/circulars/INVG67858.pdf
This is extremely surprising. A limit of 10 orders per second is negligible for serious algorithmic traders with reasonable capital. It feels like a step backward for a free and open market.
I have a few questions regarding the recent NSE circular:
1.) Is it possible to use multiple APIs to bypass or increase the 10 orders per second limit?
2.)
- If a client wishes to place orders at a speed exceeding the Threshold Order Per Second (OPS) i.e. 10 OPS, they must register their algorithm with each Exchange where the algorithm is intended to be used. The Exchanges will formulate a simplified registration and compliance framework for orders up to a certain threshold.
Are we required to disclose our algorithm to the exchange or the broker? When is the exchange expected to formalize this requirement for registration?
3.)
If a client desires to make any changes to the algorithm it is the client’s responsibility to inform the broker. The broker will then notify the exchange and seek appropriate registration updation.
How will the broker or exchange verify whether a client has made changes to their algorithm without informing them? Are we expected to host our algorithm on the broker’s or exchange’s servers?
4.)
All Retail Algorithms, including those provided by empanelled Algo providers should be hosted on broker’s cloud servers.
Do we really need to upload our algorithm to the broker’s cloud infrastructure? How practical is that? Is this requirement only for registered algorithms, or does it apply to all algo users?
5.) There is no limit of “number of orders” in a minute, right? So ideally we can place 60*10 = 600 orders per minute?
6.) When will brokers like Zerodha implement the new changes, including the 10 orders per second threshold? Will they go live on the same date as the exchange (i.e., 1 August 2025), or could brokers choose to implement them earlier? If so, will we receive adequate advance notice—ideally a few weeks or months? I ask because I’ll need to make significant modifications to my code to remain compliant without affecting my operations.
automatic expiry of passwords at the end of a
reasonable duration
This is bad security practice from what i understand, it encourages people to do 1 2 3 etc. Much better to force strong passwords instead, and we already have 2 factor.
https://ux.stackexchange.com/questions/72259/should-passwords-expire
No, if you have multiple API keys, you’ll be allowed to use only one of them with an unregistered algo with OPS <= 10. Others will need their strategies to be registered.
Discussion so far have indicated that this will be a registration and not approval process, so while you may have to disclose some information about your strategy, it isn’t necessarily going to be too detailed. Exchanges have till August to publish exact specs for the process.
This will be on a good faith basis mostly. However there may be some checks, like making the customer declare the expected maximum number of orders per second/minute/day at the time of registration and monitoring if this changes over time. This is just a possibilily that I can think of, but need not be what is implemented.
This seems to be only for vendors. We’re in contact with the exchanges for more clarity. Doesn’t make sense to host 100s, if not 1000s of customer apps on broker cloud.
Correct. However, brokers may have their own limits over and above the 10 OPS limit.
We already have a ratelimit of 10 orders per second on our APIs. We’ll go live with all new provisions as soon as there is sufficient clarity. We’ll try to give as much notice as is possible.
This limit is only if you don’t want to register your algo. If you’re a serious trader with a lot of capital, the registration itself shouldn’t be an issue for you. While we may choose to debate the number itself, this number was arrived at based on the rate limits most brokers already use. So in practice, nothing changes. The reason for having a limit in the first place is to ensure no rouge algos impact market integrity, which is a fair concern.
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Indeed, this is being contested.
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@Matti Just to clarify — is the deadline of 1st August 2025 only for publishing the specifications, or for fully implementing the entire process in code?
From what I understand, starting 1st August, clients will be restricted to placing only 10 orders per second. But if the exchange is releasing the “registration” process in August itself, doesn’t that mean there will be a period where everyone is forced to comply with the 10 orders/second limit, since no registration mechanism will be available by that time?
Hopefully, we’ll be all set with the process and the required tech to back it by August.
Will data apis be available without static ip restrictions ?
Ideally they should be, only ordering restricted if ip doesn’t match list.
This will make things more flexible, esp if we use cloud for execution and local machine for backtesting.
Yes, we’ll do this.
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This is real cause of concern. On one hand, on the first page, they require static ip address for clients without registering algo, and then they add a foot note saying everything including retail algo must run on brokers cloud. It’s doesn’t add up. Have they issued any clarification on this?
I’ve answered this above:
This seems to be only for vendors. We’re in contact with the exchanges for more clarity. Doesn’t make sense to host 100s, if not 1000s of customer apps on broker cloud.
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@Matti Regarding the static ip requirement. What if our isp is down. How many static ip will we be able to register for an api key. Please make a case for multiple IPs to be registered for backup scenarios. Also will there be any restrictions on updating the static ip at your end for such cases ? Hopefully there will be no restrictions otherwise algo users will be locked out just in case ip address of code hosting server has changed.
@nithin I suggest this is high time to make available an algo platform on Zerodha. Just basic configurable things to let people create their own handsfree strategies. May be have a look at Tradflow or Quantiply. All regulations in place, no rogue algos and extra income for Z.
PS: Kotak Neo has one built in (Though very basic).
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We’ll allow for backups for sure. The circular also allows for backup IPs. You’ll also be allowed to update the IP directly from the UI once a week. For any emergency updates beyond this, the circular provisions for us to allow such updates as well.
We have some plans around this.
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Got it. By once a week ,does it mean it will be at user’s wish rather than any particular fixed day or time right?
Also for emergency updates how smooth will it be. Like could it be done end to end within say a minute or it will have to go through several approval and may take more than few hours?
One update a week with no questions asked. Anytime.
Also for emergency updates how smooth will it be. Like could it be done end to end within say a minute or it will have to go through several approval and may take more than few hours?
We haven’t yet formed a policy around this. Will have to have some checks, but we’ll try to keep it as easy as possible.
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