Course Outline Algo Trading Module

NATIONAL STOCK EXCHANGE OF INDIA LIMITED

DEPARTMENT : SBU-EDUCATION NCFM – COURSE OUTLINE

ALGORITHMIC TRADING MODULE

1. Introduction to Algorithmic Trading  Evolution of Algorithmic Trading  What is Algorithmic Trading?  Different Trading Methodologies  Trends in Algorithmic Trading: Global and India  Benefits of Algorithmic Trading 2. Order Types  Different Order Types  Execution Trading Strategies 3. Trading Strategies  Calendar Spread  Cash Future Arbitrage Strategy  Index Arbitrage  Pair Trading  News Based Trading Strategies  Conversion- Reversal 4. Algorithmic Trading: System Architecture  Market Data  CEP Engine  Order Routing / Order Manager  Colocation  Smart Order Routing (SOR)  Connectivity Options

5. Risk management in Algorithmic Trading  Different Stages involved in Risk Management  Risk Management Specific to High Frequency & Algorithmic Trading

Regd. Office : Exchange Plaza, BandraKurlaComplex, Bandra (E), Mumbai – 400 051

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6. Audit and Compliance process  International Organization of Securities Commissions  Auditing Process and Requirements (As defined by NSE for member-broker)  SEBI Recommendations on Algorithmic Trading  Software Testing and Empanelment  Exchange Audits  Technology and System Audit  Compliance Requirements

Regd. Office : Exchange Plaza, BandraKurlaComplex, Bandra (E), Mumbai – 400 051

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