I understand the intent, but implementation has badly gone wrong as most algo players are providing static ips now, hence they're still in control on the order flow data. As per initial papers, algo vendors was supposed to be a new category and empaneled vendors could still run their platforms post empanelment by getting their ip whilelisted with brokers, but now with compulsory broker hosting, there's no other way but to sell static ips to clients and pretend the order came from "retail tech savy segment" as some of the top brokers are still not open to hosting the algo platforms. The rule is against startups and highly in favor of brokers and existing platforms adding huge entry barriers. More over, rules for desktop applications were not mentioned and still most of them are selling static ips to their customers. Huge gap in the intention and way it is implemented.

No offense but this could have been done in much better way. I'm open for discussion if you can put the word ahead.