The International Financial Services Centres Authority issued guidelines for algorithmic trading on IFSC stock exchanges, introducing approval, governance, risk control and audit requirements for market participants. No participant may deploy, offer or facilitate algorithmic trading without prior express approval from the relevant stock exchange and initial conformance testing. Market participants must maintain governance, oversight and risk management arrangements, including for algorithms using artificial intelligence or machine learning. Required controls include price, quantity, order value and automated execution checks, kill switches and system capacity checks, including for orders routed through DMA/SA. Algorithmic orders must carry unique identifiers tracing them to the individual client and specific algorithm. Systems will also be subject to annual audits by eligible auditors, auditor rotation and time-bound corrective action. Stock exchanges must establish the necessary systems within three months of the circular's issuance. Existing algorithmic trading systems must complete conformance testing within the same period.
India's International Financial Services Centres Authority sets approval, risk control and audit rules for algorithmic trading
The International Financial Services Centres Authority issued guidelines requiring prior stock exchange approval and conformance testing for algorithmic trading on IFSC exchanges. Market participants must implement governance, risk controls, order-level identification and annual system audits, while exchanges and existing systems have three months to meet the implementation and testing requirements.