The Multi Commodity Exchange of India Limited (MCX) on October 15, 2026, issued a circular regarding an advisory on the implementation of the Retail Algo Facility.
The following has been stated: -
•MCX has advised trading members to comply with SEBI and Exchange guidelines on the implementation of the Retail Algorithmic (Algo) Trading Facility.
•Brokers must engage only empanelled algo providers, obtain Exchange approval for each algo, assign unique algo IDs, conduct due diligence, and address investor grievances.
•APIs must use approved two-factor authentication, unique client-specific API keys, static IP whitelisting, and servers located in India.
•Members must maintain audit trails for orders, trades, alerts, and user identification for at least five years, while ensuring order monitoring, data confidentiality, and compliance with SEBI outsourcing guidelines.
•Brokers remain fully responsible for all orders routed through their systems and must implement adequate security and risk-control measures.
[Circular no.: MCX/CTCL/581/2026]
