ISLAMABAD, May 30, 2025:
The Securities and Exchange Commission of Pakistan (SECP) has issued a Concept Paper proposing a regulatory framework for algorithmic trading in the country. The goal is to promote innovation while ensuring market integrity and investor protection.
The proposed framework outlines responsibilities for key stakeholders: stock exchanges will handle registration and oversight, brokers must implement strict controls and governance, and third-party algorithm providers must follow legal and regulatory standards.
Initially, only institutional investors will be allowed access, with retail investor participation considered in later phases based on market readiness and risk evaluation.
The Concept Paper is open for public feedback until June 14, 2025, and is available on the SECP website. Comments can be sent via email to algo.trading@secp.gov.pk.
For more information you can check the circular https://www.secp.gov.pk/wp-content/uploads/2025/05/Press-Release-SECP-Proposes-Regulatory-Framework-for-Algorithmic-Trading-in-Pakistan-002.pdf
