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India's securities regulator looking to slow down high-frequency trading

India's securities regulator is considering measures to slowdown high-frequency trading, including a speed bump and preventing traders fromcanceling an algorithmic order until it is confirmed by the stock exchange,Bloomberg News reported July 26.

U. K. Sinha, chairman of the Securities and Exchange Boardof India, said the regulator is considering several measures to blunthigh-frequency trading, such as a fraction-of-a-second speed bump andalternating between computer and manual orders.

SEBI plans to issue a discussion paper on the proposalswithin a month and could implement guidelines in three months barring the needfor further consultation, Sinha said.

His comments expound on a May interview where he said the regulatorwas considering measures to ensure that high-frequency trading firms do notmisuse the system. Sinha had previously said SEBI was considering penalizingfirms, which flood the market with orders that do not lead to actualtransactions.

The regulator is taking action amid growing concerns thathigh-frequency traders are gaining preferential access at the National StockExchange of India.