India Regulator to Ease Derivative Rules
India's market regulator is expected to pause using closing auctions for derivatives settlement pricing following heavy industry feedback. The change aims to curb sharp price swings observed on expiry days.
India's markets regulator will suspend using closing auctions for derivatives settlement for at least a year following 20,000 public complaints, two people familiar with the matter said on Monday afternoon. The reversal comes after new pricing mechanisms introduced in August triggered sharp price swings during derivatives expiry sessions. The partial policy shift affects key futures and options contracts in India's capital markets, where traders faced sudden volatility under the short auction framework.
