Quant Funds Face Profit Risk as India Moves to Curb Options Boom
- Sebi’s proposal may shrink liquidity, eat into trading margins
- Global high-speed trading firms are expanding India operations
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Profits for global and domestic quant traders in India’s options market are set to come under threat as the country aims to slow the rapid growth in equity derivatives trading.
The securities regulator Tuesday proposed measures that could shrink liquidity in the $4 trillion futures and options market and cut into margins for market makers and traders.