Options trading gathers steam in Q2; share of cash in average volumes falls

Share of cash in falls from 2.9% to 2.5% in September quarter

The share of cash volumes in the overall trading mix has taken a knock in the first two quarters of the current financial year, squeezing margins of retail brokers.

The share of cash in average daily trading volumes has declined to 2.5 per cent in the second quarter of FY20. 

This number was 2.9 per cent for Q1Y20. The full-year figures also indicate a sharp fall. With the exception of FY16, the share of cash volumes has declined consistently from 7.7 per cent for FY13 to 4.1 per cent for FY19.

Conversely, the share of futures and options (F&O) has risen, with the