The Securities and Exchange Commission of Pakistan has published a concept paper, “Regulating Algorithmic Trading in Pakistan”, proposing a regulatory framework for algorithmic trading based on international best practices, with the stated aim of supporting innovation while protecting market integrity and investors. Under the proposed approach, exchanges would be responsible for registering and testing algorithmic traders and assigning unique identifiers. Brokers would be required to implement strong control mechanisms, meet audit and governance requirements, and maintain rigorous oversight of their algorithmic trading activities, while third-party algorithm providers would be expected to comply with applicable laws and regulatory standards. The concept paper also proposes phased implementation, starting with access limited to institutional investors and possible later expansion to retail investors subject to market readiness, risk assessment and accumulated experience. The SECP is seeking public feedback, with comments due by June 14, 2025.
Securites & Exchange Commission of Pakistan 2025-05-30
Securities and Exchange Commission of Pakistan consults on a regulatory framework for algorithmic trading
The Securities and Exchange Commission of Pakistan has released a concept paper on regulating algorithmic trading, proposing a framework aligned with international best practices to foster innovation while ensuring market integrity. The framework mandates exchanges to register and test algorithmic traders, brokers to implement robust controls, and third-party providers to comply with laws. A phased implementation is suggested, initially limiting access to institutional investors.