904-NMS-1220-15-F4.DOC rental, premium co-location access. This is allowed at a very high premium to persons or entities engaged in high volume and high value transactions. It is, in my understanding of it, intended to be nothing more than a convenience.3 Where the co-location server is allowed to be installed at a subscriber’s or renter’s premises, this is, if I might be permitted a parallel, more or less like arranging to have a dedicated branch of a bank in one’s own building if one is on a daily basis engaged in a large number of high value banking transactions. The system allows the users at these locations quick and reasonably disruption-free access to the servers. This is useful in an age when the trades are no longer done manually but are all done digitally and online. 7. Algo trades are the product of very high end mathematical modelling. These are models devised specifically to anticipate the most microscopic changes in markets and to respond to those changes in a matter of seconds. This is done not through any human intervention, an aspect that is totally eliminated, but in a wholly automated fashion by computer-generated or triggered transactions. In high value transactions the number of such transactions that can be put through is very considerable indeed. A most rudimentary example might be this: an ‘algo’ is designed to detect the most minute changes in stock prices and to respond accordingly. In anticipation of a rise in a particular stock’s value, say, with no manual intervention but by a computer program responding to the data input, a series of purchases are triggered made at a lower value so that when the markets later reach the higher level, a considerable profit is then, equally automatically, 3 Co-location service offerings and details are available on the NSE website. 7 of 30 ::: Uploaded on - 10/09/2015 ::: Downloaded on - 03/02/2020 18:08:37 :::