Effect of equity derivative contract size increase on Sep/Oct 2015

Discussion in 'Futures' started by mutualguru, Aug 11, 2016.

  1. mutualguru

    mutualguru Active Member

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    Recently sebi increased the equity derivatives contract from 2 lakhs to 5 lakhshttp://www.livemint.com/Money/Zz65020ix04GxGno5Fb3xI/Sebi-raises-equity-derivatives-contract-size-to-Rs5-lakh.html in order to "safeguard the interest of retail investors" and some fellow also started a petition against ithttps://www.change.org/p/sebi-review-decision-on-increasing-minimum-contract-size-in-equity-derivative-segment. Its more than six months and I want to check the effect of this margin increase and how it "safeguarded retail investor".

    I randomly chose three equtiy futures SBIN, CIPLA and IDFC; then downloaded its historicla data. I plotted two years of equity future contracts No of contracts and Open interest against the Date and this is the result.



    SBIN Open interest
    [​IMG]

    SBIN No of contracts
    [​IMG]

    CIPLA Open interest
    [​IMG]

    CIPLA No of contracts
    [​IMG]

    IDFC Open interest
    [​IMG]

    IDFC No of contracts
    [​IMG]

    I am not a statistician so I cant interpret the data properly but the only thing I can see is that there is only a slight decrease in the No of contracts and open interest from sep/oct 2015. The slight decrease is possibly due to the decrease in retail investors.

    Conclusion

    SEBI safeguarded the rich to become richer :):p

    I also welcome your interpretation of the data.
     
    bpr, comm4300, vsaran and 2 others like this.
  2. bpr

    bpr Well-Known Member

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    so close to no impact. More increase may be on the way.
    But they need to reduce margin . margin way too high.
     
    mutualguru likes this.

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