Buch says industry could not prove claims on algo trading

The industry was unable to demonstrate any simulation to justify their claims, Buch told reporters here.She urged the industry to come forward and demonstrate that the track record can be audited, simulated and proven but added that the industry was not ready.In all of these things, we consider the marketplace as our partner.

Sebi chairperson Madhabi Puri Buch on Friday said the capital markets regulator is open for algo trading, but the industry has not been able to prove the claims on returns.

Buch told reporters that the regulator “unhappily” broke up its circular on algo trading into two parts, with one aspect focusing on stopping the misselling in the market and the other showing an openness to relook into the matter.

''For many months, we tried to find a solution. The industry was unable to demonstrate any simulation to justify their claims,'' Buch told reporters here.

She urged the industry to come forward and demonstrate that the track record can be audited, simulated and proven but added that the industry was not ready.

''In all of these things, we consider the marketplace as our partner. If they thrive, we thrive. If they fail, we fail. It distresses a lot if market participants fail or do nasty things in the market. It is very important for us to ensure that our partners in our ecosystems do not set themselves up for controversy, failure, scams,'' she added.

Meanwhile, on her recent announcement for ASBA-like facility for secondary market transactions, she said a working group is going into the details for it and the Sebi board will take a call on it once it is ready and properly baked.

When asked about ''trading tips'' being circulated over various mediums, Buch said it is a very complicated issue and the markets regulator is in discussion with the Association of Investment Advisors for the same.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)