Description

Trading members must submit information on existing retail clients using algorithmic trading platforms as of September 30, 2025, by October 31, 2025.

Summary

BSE has issued Notice No. 20251014-3 requiring trading members to submit details of existing clients using algorithmic trading platforms. This follows SEBI circular SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/132 dated September 30, 2025, regarding the extension of implementation framework for safer participation of retail investors in algorithmic trading.

Key Points

  • Trading members must provide information on existing clients using algorithmic trading platforms as of September 30, 2025
  • Submission deadline is October 31, 2025
  • Required information includes: Client PAN, white box strategy usage (Y/N), black box strategy usage (Y/N), and product type (IBT/STWT/API)
  • File format: xlsx with naming convention: Membercode_RetailAlgo_Client Details.xlsx
  • This is part of the framework for safer participation of retail investors in algorithmic trading

Regulatory Changes

This circular implements clause 7 of SEBI circular SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/132 dated September 30, 2025, which provides milestones for extending the implementation of the framework for safer participation of retail investors in algorithmic trading.

Compliance Requirements

Trading members must:

  1. Compile data on all existing clients using algorithmic trading platforms as of September 30, 2025
  2. Prepare an Excel file (.xlsx format) containing:
    • Serial Number
    • Client PAN
    • White box strategy usage (Y/N)
    • Black box strategy usage (Y/N)
    • Product type (IBT/STWT/API)
  3. Name the file using the convention: Membercode_RetailAlgo_Client Details.xlsx
  4. Submit the file to BSE by October 31, 2025
  5. Contact trading.app@bseindia.com or call 022-2272 5873/5661/5116/5172 for clarifications

Important Dates

  • Reference Date: September 30, 2025 (data as of this date)
  • Submission Deadline: October 31, 2025
  • Notice Date: October 14, 2025

Impact Assessment

This requirement affects all trading members offering algorithmic trading platforms to retail clients. Members must have systems in place to track and categorize client algorithmic trading activities by strategy type (white box vs. black box) and product type. The data collection will help SEBI and exchanges monitor retail participation in algorithmic trading and ensure appropriate safeguards are in place. Trading members should allocate resources to compile this information accurately before the deadline.

Impact Justification

Affects trading members with retail algorithmic trading clients; mandatory reporting requirement with specific deadline