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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
The central bank’s shift to a 100% collateral requirement threatens to erode leverage, reduce volumes and force a consolidation across prop desks.
For years, the high-octane world of proprietary trading desks, better known as prop desks, has run on an efficient leverage model. By depositing roughly 50% collateral, typically a mix of cash, stocks and personal guarantees, prop traders could secure a 100% bank guarantee to meet exchange margin requirements. The result was a clean 2x leverage that effectively doubled their trading capacity.
These prop desks span financial institutions—from high-frequency trading firms like Jane Street to brokerage-run desks at some of the biggest names, including HDFC Securities and Yes Securities.
But this is about to change.
Under the Reserve Bank of …
The acquisition of IDBI Bank puts his Fairfax smack dab in the middle of the RBI’s rules on bank ownership. It must now decide whether to sell CSB Bank or merge the two lenders, neither of which will be easy.
Lenders stand to gain a lot more than borrowers in the current challenging market environment
Thinly traded listed entities have long served as breeding grounds for stock manipulation, hurting investors. The regulator, the NSE and BSE now want to fix things by focusing on efficient delisting.
