SEBI is advocating for an API-based connectivity model for Straight-Through Processing (STP) to enhance operational efficiency and reduce latency in institutional trade processing.
SEBI's Proposal for API-Based STP Framework
The Securities and Exchange Board of India (SEBI) has proposed a new framework to replace the existing centralized Straight-Through Processing (STP) Hub with direct API-based connectivity between STP Service Providers. This initiative aims to streamline processes and reduce latency and operational risks associated with institutional trade processing.
The proposed API-based model is expected to enhance scalability and efficiency, presenting a robust infrastructure to support increasing trading volumes and improving the overall client experience in institutional trading.
It is imperative for legal and compliance practitioners in the finance and trading sectors to understand the implications of this proposal. Developing an awareness of the anticipated changes will be critical for advising clients on how to adapt their operational frameworks to align with SEBI's vision for enhanced efficiency and compliance.
Citations
- SEBI Proposal (2026) SEBI Report
