SEBI likely to allow co-location in commodities market H1 2027
The Securities and Exchange Board of India, or SEBI, is in the final stages of discussions to allow co-location services in the commodities market, likely in the first half of 2027, aiming to make trades quicker and markets more efficient.
With this upgrade, market participants can place their computer servers and other IT equipment in the specialized data centers of the stock exchanges or their service providers, shaving off precious milliseconds from each transaction.
Co-location could attract foreign commodity investors
Co-location has been a game-changer in stock markets for years, mainly helping big players and high-frequency traders.
Now, SEBI wants to bring those benefits to commodities, plus attract more foreign investors by letting them trade a wider range of contracts.
While this could mean deeper liquidity and smarter markets, experts say smaller traders might find it tough competing with advanced technology from larger institutions.