“Speaking of investor stickiness or longevity, it has been our experience that investors who primarily engage in delivery-based trading have tended to do relatively well in terms of staying active in the market. They also seem to have fewer issues in managing their individual accounts,” says Rahul Sharma, JM Financial Services.
Let me get your view on this issue as well. Do you think there should be a rationalisation of weekly expiries?
Rahul Sharma: Derivatives expiries have essentially been leading to a lot of speculative volumes on these expiry days. The derivatives volumes have come down significantly after the reduction in the number of expiries about six to seven months ago. Since then, even volatility seems to have decreased considerably.
So yes, at the end of the day, it is a question of how many times the market wants to see volumes in the derivatives segment compared to the cash segment. Speaking of investor stickiness or longevity, it has been our experience that investors who primarily engage in delivery-based trading have tended to do relatively well in terms of staying active in the market. They also seem to have fewer issues in managing their individual accounts.Ultimately, it will be up to the regulator to strike a balance between what the exchanges want and, more importantly, the welfare of the individual investor.
Let me get your view on this issue as well. Do you think there should be a rationalisation of weekly expiries?
Rahul Sharma: Derivatives expiries have essentially been leading to a lot of speculative volumes on these expiry days. The derivatives volumes have come down significantly after the reduction in the number of expiries about six to seven months ago. Since then, even volatility seems to have decreased considerably.
So yes, at the end of the day, it is a question of how many times the market wants to see volumes in the derivatives segment compared to the cash segment. Speaking of investor stickiness or longevity, it has been our experience that investors who primarily engage in delivery-based trading have tended to do relatively well in terms of staying active in the market. They also seem to have fewer issues in managing their individual accounts.Ultimately, it will be up to the regulator to strike a balance between what the exchanges want and, more importantly, the welfare of the individual investor.