ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has proposed a new algorithm trading framework to regulate algorithmic trading in the country’s capital markets, aiming to balance technological advancement with market safety and investor protection.
According to a series of tweets shared by SECP on X, the Concept Paper presents recommendations based on international best practices. The proposed algorithm trading framework is designed to promote innovation while ensuring that Pakistan’s market infrastructure remains secure and transparent.
The framework defines responsibilities for key market participants. Under the proposal, exchanges will handle the registration and continuous oversight of algorithmic trading activities. Brokers will be responsible for enforcing strong internal controls and maintaining strict compliance with the guidelines. Additionally, third-party service providers offering algorithmic trading tools must meet specific regulatory requirements.
The SECP has invited all stakeholders to review the Concept Paper and submit their comments or suggestions. Feedback can be sent via email to algo.trading@secp.gov.pk by June 14, 2025.
This initiative marks a critical step in modernizing Pakistan’s capital market operations by introducing a structured regulatory approach to algorithmic trading, aligned with global standards.