Market Making Signals for CNX Nifty Futures

Financial markets are faced with asymmetric information. Therefore, issues on autonomy, accountability, and transparency arise. Consequently, markets experience instabilities and inequilibrium in investment decisions. In this context, it is observed that market-making signals are necessary to counter the inefficiencies in the market. A survey was conducted among sub brokers operating in the NSE Futures and Options (NSE Famp;O) Market. Analysis of Variance is done on the responses provided by the sub brokers. The results indicate that time of submission of limit orders, frequency of submission of orders, tick size, number of ticks, and initial margin affect the trading volume. As such, they have a signaling effect in the market. Market participants can benefit through these signals