Consultation Paper; Dated: 19.05.2026
The Securities and Exchange Board of India (SEBI) has issued a consultation paper proposing changes to ease the framework for Straight Through Processing (STP) of trades.
The consultation seeks stakeholder feedback on measures aimed at improving efficiency, reducing costs and enhancing service delivery under the existing STP ecosystem.
1. Objective of the Consultation Paper
SEBI has stated that the consultation paper seeks comments on proposed enhancements to the existing STP framework with the objective of:
- Reducing transaction latency
- Lowering operational costs
- Improving efficiency in trade processing
- Enhancing service delivery for market participants
The proposal aims to modernise post-trade infrastructure and streamline communication between market intermediaries.
2. Proposal to Transition From STP Hub-Based Architecture
A key proposal under the consultation paper is the transition from the current centralised STP Hub-based architecture to a decentralised Application Programming Interface (API)-based framework.
Under the proposed model, communication and trade processing between market participants and service providers would be enabled through direct API connectivity rather than routing through a central STP Hub.
3. Proposed Benefits of API-Based Framework
The decentralised API-based architecture is expected to:
- Reduce processing delays and latency
- Improve operational efficiency
- Lower transaction and infrastructure costs
- Enhance service quality and system responsiveness
- Improve resilience by reducing dependency on a centralised framework
The proposal also seeks to support faster and more seamless processing of trade-related information.
4. Impact on Market Participants
The proposed framework is intended to improve operational efficiency for participants involved in trade processing while maintaining continuity in market operations.
The changes are expected to strengthen post-trade infrastructure and provide a more scalable and technology-driven processing environment.
5. Public Comments Invited
SEBI has invited comments and feedback from stakeholders on the consultation paper.
Comments may be submitted up to June 9, 2026.
6. Objective of the Proposal
The proposal aims to modernise and ease the STP framework through a more efficient, decentralised and technology-enabled trade processing mechanism while reducing costs and improving service delivery for market participants.
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