Over the past few Year’s, there has been a quick shift towards algo / Quant HFT (High Frequency Trading) based trading, Where as Asset managers make 24% return in market & HFT traders make 300% Return. Both among long-term investors using execution algorithms to lower trading costs and short- term investors automating market making and statistical arbitrage strategies
Before going into a detailed discussion about the Market Makers in India, it is very important to know what exactly market making is all about. Market Making is basically aimed to inculcate liquidity in securities that are not really frequented on stock exchanges. Typically, it is the market maker, who is responsible for enhancing the demand-supply situation in securities which is inclusive of stocks, futures and options (F&O).