India's leading high frequency trading firm turns to bonds for capital
- AlphaGrep bypassed new RBI funding curbs by raising 2 billion rupees in bonds, strategically investing in AI and expanding its retail operations
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 machine-learning infrastructure and grow f its retail-facing businesses.
India’s REC set to debut tokenised corporate bond sale next week, bankers say
The Reserve Bank of India, effective July 1, has barred banks from funding proprietary trading and requires 100% collateral for other funding to brokers.
The measure was the latest in a series of regulatory steps aimed at cooling the derivatives trading boom and protecting small investors.
Comments