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While the US high-frequency trading giant was allowed to resume trading by SEBI after it deposited about Rs 4,844 crore last year, its counsel has argued that the firm still does not know what it can or cannot do in terms of trading in the Indian market.
The central bank’s shift to a 100% collateral requirement threatens to erode leverage, reduce volumes and force a consolidation across prop desks.
While the regulator’s interim order alleges massive irregularities, the long arc of unfinished probes, hearings and appeals makes closure distant.
As growth in equities cools, asset managers are looking to embed themselves in payrolls, payments, and credit. This raises their influence, but also the stakes.