The recent changes by the Indian market regulator Sebi in options trading don’t seem to have had a significant impact in the premium turnover in options trading, according to data disclosed by the stock exchanges.
There have been fears of reduced liquidity following the Sebi order on Jane Street, which doesn’t reflect in the trades undertaken on the stock exchanges.
The calibrated regulations on delta trading and limitation on trades based on delta trades have reduced risks while maintaining the market turnover at levels seen prior to the July 4 order against Jane Street.
Sebi has put in place regulations which limit open interest position sizes in derivatives in terms of delta from July 1.