F&O market turnover jumps, Jane St or not

A ban on US-based high-frequency trader (HFT) Jane Street did little to dent activity in the derivatives segment, with July volumes rising 10 per cent month-on-month to an eight-month high.

- KHUSHBOO TIWARI

Analysts and experts said the jump may have come from proprietary and retail traders, spurred by a spike in market volatility. While derivatives market turnover had come off 20 per cent on the first expiry day following the ban on the HFT but surged during the latter part of the month.

In July, the combined average daily trading volume (ADTV) for both exchanges stood at ₹381 trillion—the highest since November 2024, when initial regulatory changes were introduced to curb the frenzy in the segment. Though still far below the September 2024 peak of ₹537 trillion, experts believe volumes are showing signs of picking up.

The surge is also notable given that activity from HFTs—touted as the 'major liquidity providers'—may have cooled off amid the ongoing probe into Jane Street.