Lehman Brothers, a global investment bank, has introduced algorithmic trading for shares traded on India’s National Stock Exchange (NSE) through its LMX Trading Strategies algorithmic suite.
The first algorithmic trade was executed on 4 August using the newly installed direct market access function offered by the NSE.
“This is a very exciting step for our firm and illustrates our strong commitment to building a market leading platform across the Asia-Pacific region,” said John Adair, head of equity liquid market sales, Asia-Pacific, Lehman Brothers, in a statement.
Pankaj Vaish, head of capital markets, India, Lehman Brothers, added, “Recent regulatory changes have for the first time made this product possible in India. We can now bring Lehman Brothers’ electronic brokerage offering to one of the fastest-growing markets in the world.”
Lehman Brothers’ LMX Trading Strategies suite has been enhanced to manage all the risk validations and controls to ensure full compliance with the new Securities and Exchange Board of India (SEBI) and NSE regulations introduced for direct-market-access trading in April this year.
In addition, Lehman Brothers has also added shares traded on the Hong Kong Stock Exchange to its global proprietary crossing network, Liquidity Cross (LX). Lehman Brothers believes clients using LX to trade these shares will be able to benefit from the price improvement gained from trading anonymously.