NSE has issued a significant circular dated May 5, 2025, to enhance the safety of retail investors participating in Algo trading. Here are the key highlights:
API Access Now Needs a Static IP
To use algos, you must provide your broker with a static IP. This keeps your trading setup secure and traceable. You can register one primary and one backup IP. And, you can change your IP once per week, unless thereās a serious issue.
Low-Frequency Algos = No Registration Needed
If your algo places under 10 orders per second, itās considered ālow-frequency.ā You wonāt need to register it with NSE but brokers will still apply risk checks and tag your orders with a general Algo ID.
High-Frequency Algos Must Be Registered
If your algorithm is firing off more than 10 orders per second, it officially enters the high-frequency trading zone. To operate at this speed, youāll now need to have your algo formally registered with the NSE. Once approved, your algo will be assigned a distinct identification number (Algo ID), enabling the exchange to keep tabs on it in real time. Any change in logic later? Youāll need to re-register.
You Can Use Broker-Provided or Third-Party Algos
If developing your own trading algorithm isnāt your thing, thatās totally fine. Many brokers already offer plug-and-play algos that are pre-approved and compliant with the new rules. You can also explore options from third-party algo providers vetted by the Exchange. In both cases, compliance and registration are handled for you.
10 Orders/Second = Hard Speed Limit
Cross it without registration (still requires generic algo ID) and your broker must reject excess orders. This limit is crucial to avoid market disruption.
Security First
Expect 2FA, API key-user-IP binding, audit logs, and daily forced logouts. Brokers must log all activity for 5 years for NSE-approved specific algos.
Family Accounts Can Share IPs (If approved)
If you and your spouse or family members trade from the same home setup, you can request shared IP use. But to do this, you must submit a formal request to your
broker and get it approved.
Bad Algos? NSE Can Shut Them Down
Misbehaving algos can and will be terminated by the exchange instantly to preserve market integrity.
What does this mean for you?
Algo trading isnāt being restricted, itās just getting safer. These changes bring retail algo access closer to institutional-grade security, while still keeping things accessible.
I am understanding that Broker/Exchange can restrict the order placement if Static IP and other requirements doesnāt fulfill. However, Historical data and other API features will remain intact and usable. Please confirm.
@Anand_Kumar wherever you are running the algo from - youāll need a static IP. So you can run it from home if your ISP gives you that capability or you can run from AWS.
Yes - likely it will be an additional cost to get a static IP from any provider.
Weāll get back to you on the modalities (IP v4 vs v6) as weāre also getting clarity
If this circular is only from NSE, and not from SEBI, does this mean that we can algo trade in BSE without any requirement of static ip after Aug 1 ? Does BSE have any limitations because of which people prefer NSE and hence worried to get static IPs (In my ISP, they are not even providing it)
If I want to run my algo setup from my local laptop and cloud, will I be able to use 2 static IPs at the same time for my api key somehow?
For more than 10 orders per sec, algo registration, review and approval from NSE, would simply mean disclosing your hard developed algo (which should be kept private) to someone else (NSE in this case), how can that be justified?
1 - 1st August has been the tentative date, but thereās no full clarity from the exchanges on it yet. BSE hasnāt yet issued any circular regarding the same.
2 - No clarity/specifications on the algo registration framework from either of the exchanges yet.
Weāre waiting on details and specifics from the exchanges too!
Thereās still some ambiguity around the use of static IPs. We are in touch with the exchange to get further clarification.
As per the current circular, you are theoretically allowed one static IP for the test environment and one for production. If there are any updates or changes, we will share them via an official announcement.
Could you please clarify the instructions brokers have received regarding the new SEBI regulations?
To the best of your knowledge, are all brokers required to implement the limit of 10 orders per second and mandatory static IP addresses by August 1, 2025, even though the registration process has not yet been released?
If this is indeed the requirement, are you currently working on integrating these changes into your systems, and will you be ready before the August 1, 2025 deadline, assuming NSE does not grant an extension?
As of now, I have not observed any broker implementing these changes. Are all brokers expected to simultaneously implement these updates on the morning of August 1, 2025?