apidays LIVE India 2021 - Connecting 1.3 billion digital innovators May 20, 2021 Open Broking revolution in India Raghava BS, Head of Digital Initiatives at Angel Broking

1. www.angelbroking.com
Open Broking
Revolution in India
Raghava-Head Digital Initiatives

2. 1
3
25
0
5
10
15
20
25
30
2016 2018 2021
No of Brokers providing Open APIs in India
* There are 300+ registered Stock Brokers in India
Broker Side :
• Top 20 Stockbrokers are providing Open API platforms
• Currently ready libraries are available in multiple languages
like Python, R, java, PHP, GO, C# etc
• Increased Retail participation
• Technical forums are hosted by Brokers to solve clients
connectivity issues and build a community
Open API landscape:
Customer Side :
• Millennial customers are more educated
• API based trading has opened new way to trade using coding
• Open APIs have created an opportunity for new age Fintech startups
to provide unique solutions
• Enterprise grade strategies are now available for retail customers

3. Why are Brokers more Open?
Key Drivers for Open API adoption in Broking industry?
1. Facilitates Algorithmic Trading
2. Leverage Fintech Startups Ideas and provide innovative
solutions to their customer base
3. Shift in Indian Broking Business Model
Algo Trading
Fintech
Discount
Broking
Discount Broking Business model:
• Indian Broking model is shifting away from traditional plan to
discount broking plan
• Discount broking model makes money only through intraday
trades as delivery trades are free
• Algo Trading facilitates more Intraday trades

4. Decide
Buy/Sell
Analyze Market
Information/
Recommendation
Normal Trading:
Brokers Mobile/Web Apps

5. What is Algo Trading:
Decide on Tech
indicators &
Strategy
Live Market Data
API
Historical Data API
Code your Strategy
Back test your strategy
on Historical Data set
If Strategy
is
Profitable
Buy/Sell Signal is
generated
Trading APIs
Order get
placed real
time in
Clients A/C
Clients need not open their Mobile or Web Applications

6. Types of APIs used in Algo Trading
Trading APIs
•Used to execute Orders like Buy, Sell,
Cancel
•Diff types of Orders: Bracket Order,
Cash and carry, Cover order, GTT order
•Trade Book
•Instruments
Historical
Price API
•Mainly used to back test Algorithms by
Algo traders
Live Market
Feeds API
•Mainly used to track stocks prices to
decide on entry and exit triggers by
Algo traders

7. Advantages of Algo Trading:
No
emotional
Bias
Fast and
Robust
Fully
Automatic
Algos are
available

8. Tectonic Shift in Algo Landscape:
• Largely Portfolio management
service (PMS) industry was using
Algo Trading for catering to HNI
Clients
• PMS Companies used to have SEBI
approved OMS systems where they
used to develop Algos and sell it to
HNI
• Was only available to HNIs and Ultra
HNIs
• OpenAPI platforms by the Brokers have
enabled Retail segment to try out Algo
Trading
• A coder who used to work for Prop Desk
can now use those strategies for his own
account
• Some of these developers have started
Fintech startups which provide platforms
to Retail segments
• Fintech startups use Brokers API layer to
carry orders from Customers to Exchange
• Strategies which were only available to
HNIs are now available to Retail users
for a small price
Before Open API platforms by Brokers After Open API platforms by Brokers

9. Fintech Landscape
Retail User
Codes strategies
Integrates with API
Codes strategies in MT4/5,
Amibroker, Ninja Trader
Builds strategy on no code
platform
Subscribes to Algo in Algo
Marketplace
API Bridge
No Code Platform
Algo market place
Subscribes to Investment
portfolio
Auto Investment
rebalance platforms
Open
API
layer
OMS
RMS
Broker’s Environment

10. Win-Win Model for Brokers & Fintechs:
Fintech Ecosystem
Open API Layer
Broker
For Retail Clients:
• Experience Latest Fintech products
• Do more than just App based trading
from Broker
For Brokers
• Leverage innovation from Startups
• Profitable partnerships
• No data leakage
For Fintech Startups:
• Tap in to ready customer base of Brokers
• Symbiotic relation with broker
• Grow quickly
Open APIs facilitate a Win-Win Model all entities

11. Fintech Ecosystem
More than 30 Fintech Startups have come up in last 1.5 yrs

12. Way Forward
Customers:
• Retail customers will shift towards
Algo trading
• Algos will be more accessible to retail
clients
For Brokers
• All brokers will have Open API layers
• Each broker will have dedicated team to
facilitate API based Trading
• App Store to accommodate all Startups
where customers can discover and use
Fintech Apps quickly
Fintech Ecosystem:
• More innovative Startups
• Social Trading
• Trend Following/Copy Trading

13. www.angelbroking.com
THANK YOU