India's leading high frequency trading firm turns to bonds for capital
MUMBAI: AlphaGrep, one of India’s largest home-grown high-frequency trading firms, has tapped the bond market for funds amid curbs on bank-financing to proprietary trading firms. The firm said it has raised 2 billion Indian rupees ($21.09 million) through non-convertible debentures of one-year tenor at 10.5% per annum. AlphaGrep added that it plans to use the funds to augment its AI and…
AlphaGrep, India's prominent high-frequency trading firm, has turned to the bond market to secure capital in the wake of stringent regulations limiting bank financing for proprietary trading entities. The company has successfully raised 2 billion Indian rupees ($21.09 million) through non-convertible debentures with a one-year maturity rate of 10.5% per annum.
These funds will be allocated towards enhancing AlphaGrep's AI and machine-learning capabilities, as well as expanding its retail-facing services. The RBI's recent ban on banks providing funding to proprietary trading firms and the requirement of 100% collateral for other funding arrangements to brokers, effective July 1, reflect the central bank's efforts to temper the derivatives trading boom and safeguard small investors.
Brief written by urgent.news from Business Recorder's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
