Hottest Emerging Market for Algo Trades Wants to Cool Down
- Rapid computer trading is 40% of India's stock-market volumes
- Regulator and exchanges looking at ways to rein in excesses
India May Rein In High-Speed Trades
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India’s flash boys are discovering that even the biggest emerging market for computerized trades has its limits.
In just five years, high-speed and algorithmic traders have gone from bit players to a dominant force on Indian exchanges, enabled by a technological arms race between the nation’s top exchanges that cut transaction times to tiny fractions of a second. Now, as some of the country’s largest brokerages call for tighter regulation, those same bourses are starting to explore whether speed traders should be reined in.