The National Stock Exchange of India saw its average daily derivatives turnover plunge 23% in July 2026, hitting a 17-month low at 214 trillion rupees. This decline follows new Reserve Bank of India rules prohibiting banks from funding proprietary trading and requiring brokers to hold 100% collateral against any funding received. The Bombay Stock Exchange benefited from this situation with an 8.4% increase in derivatives turnover during the same period, suggesting a migration of activity rather than its disappearance. Analysts had predicted a potential halving of profit margins for small trading firms and an overall 20% drop in derivatives volumes.
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