> Direct Market Access (DMA)
Direct Market Access (DMA)
Direct market access (DMA) is a term used in financial markets to describe electronic trading facilities that give investors wishing to trade in financial instruments a way to interact with the order book of an exchange
Securities & Exchange Board of India (SEBI) vide its circular no.MRD/DoP/SE/Cir-7/2008 dated April 03, 2008 as per Annexure I, has approved and given necessary guidelines for providing Direct Market Access (DMA).
Direct Market Access (DMA) facility through various connectivity modes permits the trading members of INDIAINX to provide direct trading terminals to their DMA clients.
As quoted in the SEBI circular 'Direct Market Access (DMA) is a facility which allows brokers to offer clients direct access to the exchange trading system through the broker's infrastructure without manual intervention by the broker. Some of the advantages offered by DMA are direct control of clients over orders, faster execution of client orders, reduced risk of errors associated with manual order entry, greater transparency, increased liquidity, lower impact costs for large orders, better audit trails and better use of hedging and arbitrage opportunities through the use of decision support tools / algorithms for trading.