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SEBI Tightens Surveillance: After the action of market regulator SEBI on American trading company Jane Street, it has now made its focus on high frequency trading. SEBI has expanded its scope by furthering its investigation. Last week, Jane Street was accused that he had illegally made money from the Indian market by rigging. After which SEBI, while banning her business in the domestic market, instructed to return the earnings made illegally. This has been revealed after a thorough investigation at the ground level of several months.
SEBI enhances the scope of trading strategy
According to Business Standard reports, even though the big rules have not been violated in the case of Jane Street, high frequency trading such as IMC trading, opitor, Citadel Securities is rapidly spreading its business in India. Along with this, quant firms are increasing. In such a situation, when India is the largest world market according to trade contracts, SEBI aims to alert now.
The trading rules of derivatives have been strictly strictly done by the market regulator to prevent things like rigging. These include monitoring the Intrade Market Wide Position Limit four times a day to reduce the disposal risk, revised market wide position limit and new delta calculations for open interest.
Preparation for strengthening of monitoring mechanism
According to market experts, the market regulator is strengthening its monitoring mechanism to find out about the factor of trading patterns and prices that are affected by the market regulator. With this, even if they do not inform the stock exchange, they can still be detected better.
