Mapping the Algo Trading Across Asia Pacific

The algorithmic trading strategies of Asia Pacific region is still in the phase of growth. Experts in the markets worldwide say that the Asia Pacific region is in the need of more consistency in their regulatory regimes. The markets of Asia Pacific have a great dynamics that shown the inconsistency of the market. This can only be controlled by the regulatory bodies. The promotion of best practices in the markets of APAC tosses the necessity of facilitating the standardization of algorithmic trading and having a control over it. The key features of the APAC markets on whole which gives way for better algo trading and also that affects the electronic medium are discussed below.

5 Main Option Trading Strategies

Option is the choices that an investor has while playing in the market. It is more to be called as a securities contract which will be giving you the right to make a call (buy) or put (sell) the index, underlying equities or even the ETF. This is to be done in the predetermined time i.e. before the expiration date, which is called as the preset time period in market terms. Also it is must to have the strike price for the call or put, which is nothing but the predetermined price for what is being bought or sold.

Acceptance of Algo Trading in Indian Stock Market

The Securities and Exchange Board of India has told the brokers to share the facilities of Algo trading and direct market access to the institutional clients almost a year back. This means of alternative trading methods has quite reached many marketers by the time. But still the institutional clients are offering their orders to the brokers in the same old traditional methods who then will be entering those data in to the exchange’s database. Both the markets in India repeat the same. But it is soon expected that many foreign brokerages will slowly start sharing their algorithmic products with the Indian marketers.

Credit Suisse’s announces algorithmic trading in India

Advanced Execution Service that belongs to the Credit Suisse has told very recently that they may end up in entering into the algorithmic trading in the Indian market. It is already offering direct market access facility to the clients from the year 2008. Some other leaders in the electronic industry like JP Morgan, Goldman Sachs and the Citigroup are now involved in the procedures of launching algorithmic trading service in the Indian market. Few other companies are already offering the service in the Indian market. E.g.: Merrill Lynch.

The entry of the top level players as foreign investments is really appreciable as their clients here are already using the same technology for their trade and order executions. It is expected soon that the Indian markets will be facing the algorithmic trading technology and the orders at a real faster rate. Few more companies are yet to announce about their launch of algorithmic trading. Marketers says that the chances of Indian market going in to algorithmic trading completely or up to a greater extend is very high in future as the major investors in the market are moving towards it and some are in the process of learning it. Read More on Algo trading course

Why does the delay happen?

The head of AES, Ian Smith has given a statement regarding the delay in the market to get adapted to the Algorithmic trading. He told that AES being a leader in the market is trying to provide all the best strategically possible trading terminologies to their clients in the market. And hence it will surely take time for them to alter the necessary things and give away a full fledged service. The timing at which SEBI announced the trading technology is another reason. The announcement of facilities of DMA and algorithmic trading has taken place in the year 2008 and the market faced a steep fall of equities the same year. This made many marketers to turn towards the issue, rather than the new technology.

Indian market is slowly getting adapted with the algorithmic trading. With many leaders in the market moving towards the algorithmic trading, the trading strategy is getting popular in the market now. Many investors who were the clients of these leaders have also started to make use of the strategy. With this scenario it is quite easy to say that the Indian markets will get into a higher percentage of algorithmic trading soon.

RBI Has Cancelled 3 Out Of 4 Bond Tranches at Auction

The Reserve Bank of India has cancelled out three bonds out of four, which were actually planned for sales on this Friday. The cancelled bonds belongs to the series of sovereign bonds and thus the move made by the RBI was told that it is showing the unwillingness of the government to borrow the bonds at a very high rate and also the government’s position of surplus cash. Marketers and traders also give many other reasons for the move of RBI. But the majority says the same reason of surplus cash and unwillingness.

Rs 15000 crore bond sale offer

RBI has offered a sale of Rs. 15000 crore bonds and the maturities of these bonds range from 9 years to 29 years. But the total sold out bonds by the central bank is just Rs.6000 crore whereas the other three security bonds were cancelled out. The maturity of the bonds sold out was till 15 years. Rate of interest strategist at the SBI DHFI Soumyajit Niyogi has told that the development at a very high yield would be more dampening in this juncture. He also added that both the government and the RBI are doing really an excellent job to restore the market confidence and to balance the government’s borrowing cost.

Many traders in the Mumbai stock exchange have accepted the fact that the RBI is doing this move to achieve the restoration if confidence in the market. The greater changes that were affected the market recently were found to be acting still more badly and hence the RBI doesn’t want the situation to prevail any more. Thus it has taken a decision to cancel out 3 of their security bonds which were about to be sold in the market on this week. This move would also help the government to prevent itself from higher rates. This move makes sense that the government has surplus cash now.

Greek’s fate is enough for the cautious investors to stay

A meeting that would be scheduled in the weekend would be helpful in deciding the Greek’s fate, which was a reason behind the cautious investors to stay in the market. These cautious investors were the one who asked for the prices with lot and risk and big uncertainties in it. If the creditors in Greece are agreeing to give a fresh lifeline for the country, then it will really relieve apprehension in the global market. The yields from the domestic bonds may also fall by pushing the prices up. This is to do with government borrowing, which is low or may be the government supply also that would be added to firm up.

Last month, the primary dealers, who were underwriting the weekly auctions just by buying the unsold portions of it were made to pick up a debt of worth Rs. 3301 crore. RBI has also rejected bids, which was around Rs.8000 crore of the Treasury bill. It has also rejected the securities of sovereign debt which was just short terms.

Madras Stock Exchange (MSE) Was Permitted By SEBIfor Business Exit

An order was passed recently by the Exchange Board of India and the Market Regulator Securities that allows the Madras Stock Exchange to exit from the business. The Madras Stock Exchange is 78-years old and was one of the oldest and largest exchanges in the country. After the issuance of exit policy by the SEBI on May 2012, many exchanges in the country have gone out of the business. Now, the MSE will be the 14^th exchange to exit from the business.