Leading bourse BSE will conduct a mock trading session on Saturday to test software related to trading and risk management, including algorithmic-based trades.
In three separate circulars, BSE has asked trading members with user IDs approved for algorithmic-based (algo) trades to participate in the mock session, which would be held for the currency derivative segments, equity derivatives and equity segment.
The move is part of the exchange’s efforts to provide its members with a robust and efficient system for trading with better features.
"The exchange has scheduled a mock trading session… on Saturday, January 9," the BSE said in three separate circulars today adding the session is "regarding testing of software used in or related to trading and risk management".
"Trading members shall ensure that all user-ids approved for Algorithmic trading, irrespective of the algorithm having undergone change or not, shall participate in the mock trading session," the bourse said.
Besides, "trading members using third party trading platforms of empanelled vendors or in-house developed systems can also test their respective trading application during the session for various functionalities, including exceptional market conditions," it added.
Algo trades refers to high-frequency and automated execution of trades on the stock exchanges through pre- programmed software platforms installed on servers.