About Co-location Trading:
- The National Stock Exchange in 2009 started to offer co-location services to members of the exchange.
- It allows a member to set up his server in a specifically earmarked data centre within the NSE’s exchange premises for a certain price.
- The relative proximity allows members wishing to gain access to the entirety of buy and sell orders sent because of the reduced time taken for order execution.
- Is it Illegal? Stock exchanges across the world allow the practice to flourish as a paid service. The SEBI allowed exchanges to offer co-location in 2008.
Key facts about National Stock Exchange
- It is one of the two main stock exchanges in India, with the other being the Bombay Stock Exchange (BSE).
- The NSE is a prominent and technologically advanced stock exchange, and it plays a crucial role in India's financial markets.
- It is India's largest financial market and the fourth largest market by trading volume.
- The National Stock Exchange of India Limited was the first exchange in India to provide modern, fully automated electronic trading.
