<p>Markets regulator Sebi has said that it will seek the help of forensic auditors with regards to the ongoing probe into the NSE co-location case.<br /><br />The watchdog has already issued show-cause notices to the National Stock Exchange (NSE) and several of its current and former executives as part of its investigation into alleged lapses in high-frequency trading offered through NSE’s co- location facility.<br /><br />Briefing reporters after its board meeting on Wednesday, Sebi Chairman Ajay Tyagi said that the regulator is examining the exchange’s response to the show-cause notice. <br /><br />Besides, the regulator will engage the forensic auditor in the NSE co-location case to probe if brokers made unfair gains in connivance with exchange officials. Earlier, the NSE had appointed forensic auditors to look into the issues related to the co-location issue.<br /><br />The case relates to some brokers allegedly getting preferential access through co-location facility at the NSE, early login and ‘dark fiber’ — which can allow a trader a split-second faster access to data feed of an exchange. Even a split-second faster access is considered to result in huge gains for a trader.<br /><br />Some staff members allegedly told the forensic auditors appointed by the NSE that they acted on “advice from seniors” regarding preferential access for some to the co-location facility.</p>
<p>Markets regulator Sebi has said that it will seek the help of forensic auditors with regards to the ongoing probe into the NSE co-location case.<br /><br />The watchdog has already issued show-cause notices to the National Stock Exchange (NSE) and several of its current and former executives as part of its investigation into alleged lapses in high-frequency trading offered through NSE’s co- location facility.<br /><br />Briefing reporters after its board meeting on Wednesday, Sebi Chairman Ajay Tyagi said that the regulator is examining the exchange’s response to the show-cause notice. <br /><br />Besides, the regulator will engage the forensic auditor in the NSE co-location case to probe if brokers made unfair gains in connivance with exchange officials. Earlier, the NSE had appointed forensic auditors to look into the issues related to the co-location issue.<br /><br />The case relates to some brokers allegedly getting preferential access through co-location facility at the NSE, early login and ‘dark fiber’ — which can allow a trader a split-second faster access to data feed of an exchange. Even a split-second faster access is considered to result in huge gains for a trader.<br /><br />Some staff members allegedly told the forensic auditors appointed by the NSE that they acted on “advice from seniors” regarding preferential access for some to the co-location facility.</p>
