MUMBAI: 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 co-location facility.
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 different recognised stock exchanges,' SEBI said.
It added exchanges will also need to implement these changes within a month.