Traders are closely monitoring India's derivatives market following a ban on Jane Street Group, focusing on volatility and options volume on expiration day.
Investors are waiting to see the impact of the ban on market dynamics, especially on Thursdays when half of India's equity-derivatives expire, a key day for Jane Street's strategy.
Analysts anticipate a 20% to 30% drop in options volume on weekly contracts as large trading firms may refrain from strategies similar to Jane Street's, following SEBI's crackdown.
SEBI's increased scrutiny on derivatives trading comes after retail investors suffered significant losses in the market, with recent reports showing worsened losses despite decreased trading by speculative traders.