Description
Trading members must submit details of existing clients using algorithmic trading platforms as of September 30, 2025, by October 31, 2025, in specified format.
Summary
BSE has issued a notice requiring trading members to submit information about existing clients using algorithmic trading platforms as of September 30, 2025. This directive follows SEBI circular SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/132 dated September 30, 2025, which outlined milestones for implementing the framework for safer participation of retail investors in algorithmic trading. Trading members must provide the required data in a specified xlsx format by October 31, 2025.
Key Points
- Trading members must submit client details for algorithmic trading platform users as of September 30, 2025
- Submission deadline is October 31, 2025
- Data must include Client PAN, white box strategy usage, black box strategy usage, and product type
- File format must be xlsx with specific naming convention: Membercode_RetailAlgo_ClientDetails.xlsx
- Product types include IBT (Internet Based Trading), STWT (Semi-Automated Trading with Technology), and API
- This is part of SEBI’s broader framework for safer retail participation 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 framework for safer participation of retail investors in algorithmic trading. The requirement aims to create a comprehensive database of retail clients engaged in algorithmic trading activities.
Compliance Requirements
Trading Members must:
- Compile data on all existing clients using algorithmic trading platforms as of September 30, 2025
- Provide the following information for each client:
- Client PAN
- White box strategy usage (Y/N)
- Black box strategy usage (Y/N)
- Product type (IBT/STWT/API)
- Submit data in xlsx format
- Use file naming convention: Membercode_RetailAlgo_ClientDetails.xlsx
- Submit to BSE via email at trading.app@bseindia.com
- Complete submission by October 31, 2025
Contact Information for Queries:
- Email: trading.app@bseindia.com
- Phone: 022-2272 5873/5661/5116/5172
- Contact Persons: Vivek Garg (Head-Trading Development), Ketan Jantre (Head-Trading Operations)
Important Dates
- September 30, 2025: Reference date for client data (snapshot date)
- October 14, 2025: Notice date
- October 31, 2025: Submission deadline for client details
Impact Assessment
Impact on Trading Members:
- Medium operational impact requiring data compilation and submission
- Trading members need to review their client base and categorize algorithmic trading users
- Requires understanding of client trading strategies (white box vs black box) and product types used
Impact on Market:
- Part of regulatory effort to enhance transparency in retail algorithmic trading
- Helps exchange and regulator monitor and supervise algorithmic trading activities
- Supports safer participation framework for retail investors in algorithmic trading
Compliance Burden:
- One-time data submission requirement with clear deadline
- Standard format provided reduces ambiguity
- Support available through BSE contact channels for clarifications
Impact Justification
Mandatory data submission requirement for trading members with algorithmic trading clients, part of SEBI's framework for safer retail participation in algo trading