SEBI (Securities and Exchange Board of India ) has released a circular to permit Smart Order Routing (SOR) in the Indian Securities market. Two years back SEBI had allowed DMA, DMA Algo flows. Currently, these products are successfully used by many brokers.
Indian securities markets are becoming more and more competitive and close to the matured markets in the world.
NSE and BSE, two important markets in India, will be prime destinations where orders will be routed using SOR technology.
It will take 2-3 months of time before we can see first order traded using SOR.
Let's wait and watch this space on following lines :
Exchanges
1. Guidelines/Regulations for SOR product ?
2. Preparedness from exchanges to launch the product ? i.e. unique id requirement.
3. Who will be the first exchange to launch the product ?
Brokers
1. Global brokers will use SOR's from other markets ( US/EU ) to customise them for India ?
2. What kind of customizations will be needed for Indian markets ?
3. Can they leverage existing infrastructure to on board SOR ?
4. Who will be the first broker to launch SOR product ?
Friday, August 27, 2010
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