BSE enlists HFTs after low participation in new closing auction
BSE is bringing in high-frequency traders (HFTs) and other market players to help its new closing auction system, which launched last August but has struggled with low participation and unpredictable trading.
CEO and managing director Sundararaman Ramamurthy admitted that HFTs and retail investors "seem to be not seeing benefit of this system," so some minor changes will always be considered to make the system more efficient.
BSE and NSE options turnover fall
Since the auction system rolled out, BSE's trading volumes have dropped sharply: index options turnover hit an 18-month low in August, and BSE shares have fallen nearly 19%.
Even the National Stock Exchange (NSE), BSE's main competitor, has seen a decline in options turnover.
The changes are raising concerns about liquidity across both exchanges.