Proprietary Trading
Proprietary trading (http://manishhathiramani.com/about) books may worth 100-800 crore INR and the profitability of this segment has prompted several brokers to stop running conventional business models. You will find most stock broking firms housed in the BSE towers surviving doing proprietary trading. These are brokers who did not embrace the more modern business models. When retail investors stopped investing post 2008 crash, these brokers had no option but to trade for themselves. The advent of a large number of retail brokers with online capabilities, low retail investor participation, regulatory tangles and higher investor servicing cost have prompted brokers to rely more on proprietary trading.
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