SEBI Updates : Guidelines for Order-to-trade ratio (OTR) for Algorithmic Trading

The following modification shall be carried out in the existing OTR framework: a. Stock exchanges may be permitted to introduce additional slabs upto OTR of 2000 (from existing OTR of 500), and for OTR more than 2000. Such slabs can be introduced with deterrent incremental penalty, which stock exchanges may decide jointly. 
b. On the third instance of OTR being 2000 or more, in  last 30 days (rolling basis), the concerned member shall not be permitted to place any orders for the first 15 minutes on the next trading day as a cooling off action.  

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