Algo Registration FAQs¶
Below are the most common questions related to SEBI-compliant algo registration, verification, modification, and compliance requirements on Nubra. Click any question to expand the detailed answer.
Fundamentals (What, Why, and Who)¶
What is Algo Registration, and why is it required?
Algo registration is the process by which an algorithm (or an algo product/API) is formally registered with the exchange (via the broker) and assigned an exchange Algo-ID. Registration is required to: enable auditability and tagging of algo orders, allow exchanges to monitor/kill rogue algos, and enforce OPS (orders-per-second) thresholds and RMS controls to protect retail investors and the market.
Who needs to register their algo?
Under SEBI and exchange (NSE/BSE) guidelines, only algos that qualify as automated trading systems — meaning they can place or modify more than 10 orders per second per exchange per segment — must be registered and approved before live trading.
You must register your algo if:
- Your system places, modifies, or cancels 10+ orders per second automatically.
- You use automated order logic (not manually triggered orders).
- You intend to run strategies continuously or unattended during market hours.
- You are distributing or offering the algo to other users or clients.
- You’re integrating through Nubra’s REST or WebSocket Trading APIs for automated execution.
🔹 You do not need registration if:¶
- You place or modify less than 10 orders per second, per exchange segment.
- You’re using APIs for manual or semi-automated trading (e.g., execution assist tools, alerts, dashboards).
- You’re in the UAT / paper trading environment and not executing live trades.
Even if you fall below the 10 OPS threshold, Nubra still recommends:
- Static IP whitelisting for security and traceability.
- Using Algo IDs for organized tracking of strategies.
Does Nubra support SEBI-compliant algo registration for both brokers and clients?
Yes — brokers (including Nubra acting as a trading member) must follow exchange/SEBI implementation standards: empanel vendors, register API products, and register client/broker algos so each gets a unique Algo-ID. The broker remains responsible for orders placed via its APIs.
Registration & Lifecycle¶
What documentation is required for algo registration?
Commonly required documents include: strategy write-up (whitebox/blackbox as applicable), RMS / risk controls write-up, system audit / auditor certificate, vendor empanelment proof (if third-party), and any annexures the exchange prescribes. Exchanges also ask for testing evidence and SOPs. Specific annexures/templates are published by each exchange.
How does a client register or whitelist an algo under their account?
To register and run an algo using Nubra’s APIs, clients must complete two key steps — exchange registration and IP whitelisting — both required under SEBI’s retail algo framework.
🔹 Step 1: Exchange Registration (via Broker)¶
- Submit the required documentation to Nubra (or your empanelled broker) — this typically includes:
- Strategy write-up / RMS details
- Auditor or system certification
- Broker authorization letter
- Any vendor empanelment proof (if applicable)
- Nubra reviews and forwards your algo details to the exchange (NSE/BSE).
- The exchange issues a unique Algo ID, which is mapped to your trading account.
- This Algo ID is then used to tag all trades originating from your algo system.
🔹 Step 2: IP Whitelisting on Nubra Dashboard¶
Once your UAT or LIVE credentials are active, go to:
Account Settings → API Credentials → Update Static IP
Here, you’ll see fields for Primary IP and Secondary IP under “Update Static IP”.
- Enter your static public IP address(es) — these are the IPs of your trading or algo server.
- Primary IP → your main system/server that will access the Nubra API.
- Secondary IP → backup or failover IP (optional).
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Click “Update.”
Nubra will now restrict all REST and WebSocket API access for your account to these IP addresses.
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All algo orders from non-whitelisted IPs will be rejected to ensure compliance with exchange security norms.
How does Nubra verify whether an algo is approved before execution?
Nubra maintains a registry mapping registered Algo IDs to clients/vendors and block or flag order flows if an Algo ID is missing or if OPS thresholds are exceeded. Exchanges provide tagging mechanisms and expect brokers to prevent unregistered >10 OPS flows. Brokers also test algos in exchange simulation environments prior to go-live.
Can a registered algo be modified or versioned after approval?
Yes — but material changes to logic must be notified to the exchange and registrations updated. Brokers are expected to report modifications and maintain version/audit trails.
Testing & Compliance¶
Does Nubra provide a sandbox for algo testing prior to registration?
Nubra’s UAT sandbox is fully aligned with the exchange testing environment —
you can use it for strategy backtesting and pre-registration validation before seeking exchange approval.
🧠 In other words, you should first build and test your strategy in Nubra UAT (our simulation layer). Once it’s stable, you can submit it for broker review and exchange registration.
Are separate registrations needed for each strategy or one for all?
Yes, exchanges expect each distinct algorithm/product to be registered and assigned its own Algo ID. If you change the logic materially, that change is reportable/subject to re-registration updates.
How do I ensure my strategy complies with exchange and broker risk checks?
Best practices:
- Follow exchange RMS templates and SOPs: provide strategy + RMS write-ups.
- Run exhaustive tests in simulated environment and keep audit logs.
- Implement kill-switch and throttling, static IP + API key whitelisting, two-factor auth/OAuth as required.
- Ensure auditability: store order/timestamp logs for at least 5 years (exchange requirement).
- Coordinate with your broker (Nubra) for pre-submission checks to reduce rework.
Continue exploring related FAQs¶
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