India's capital markets regulator
on Thursday said bourses must allow connectivity between
co-location servers of brokers housed in different exchanges.
Amending the rules governing co-location facilities, or
servers placed near exchanges to maximise trading speed, the
Securities and Exchange Board of India (SEBI) said bourses must
'ensure complete control and jurisdiction' over their
They should also submit a quarterly compliance reporting
regarding any outsourcing services, the market regulator said.
The exchanges must offer 'direct connectivity between
servers of a stock broker placed in co-location facility of a
recognised stock exchange and servers of the same stock broker
placed in co-location facility of a different recognised stock
exchanges,' SEBI said.
It added exchanges will also need to implement these changes
within a month.