Reliance Securities is investing heavily in new technologies including robo-analytics and expects over 30 per cent of its broking business to come from mobile trading platforms.
Betting big on mobile trading in derivatives market, leading brokerage Reliance Securities today said it is investing heavily in new technologies including robo-analytics and expects over 30 per cent of its broking business to come from mobile trading platforms.
“The number of mobile traders increased from six lakhs to
nine lakhs in last one year (growth of 50 per cent). In volume
terms, we see this emerging as a Rs 6,000 crore market in next
2-3 years and scaling upto Rs 10,000 crore in next five
years,” Reliance Securities CEO B Gopkumar told PTI.
Reliance Securities, the broking and distribution business
of Anil Ambani-led Reliance Group’s financial services arm
Reliance Capital, has recently launched new trading platforms,
including a mobile-based trading product for derivatives.
Gopkumar said the mobile market share in overall trading
will grow to 3-4 per cent in next couple of years, where more
than 90 per cent of volume share will still be from futures
and options.
“We have launched two products Tick and Tick Pro. While
Tick is a web trading platform aimed to provide a normal user
offering features of a high-end dedicated platforms at
affordable rates under our value broking model, Tick Pro is
India’s first mobile app specially for derivatives market. We
believe there is a huge potential for this segment,” he said.
Talking about the derivatives market, Kumar said an
estimated 94 per cent of overall market volumes is contributed
by derivatives.
“Of this about 60 per cent is purely through online
trading translating into Rs 60,000 crore daily volume. Cash
market is a minuscule 6 per cent. Derivative volume has grown
by 150 per cent in the last seven years compared to cash
market volumes which grew only by 50 per cent,” he said.
He further said that in the last one year, the overall
market share of mobile trading has increased from 0.5 per cent
to 1.2 per cent.
“In volume terms, the daily average volume growth on
mobile has increased from Rs 600 crore to nearly Rs 1,600
crore. 90 per cent of this volume of mobile trading is
derivative trading.
“Within the online platforms, Futures and Options volume
on mobile grew three-times in fiscal 2015-16 whereas growth in
other online platforms was at 55 per cent,” he added.
Kumar said more contracts would be added while extension
of market timings and introduction of options in commodity
markets would be other key drivers for growth of the market.
“On the technology front, dedicated and customised
platforms for Futures and Options traders, like TickPro, that
focus specifically on derivative trading on mobile will aid
the growth,” he said.
On Reliance Securities, Kumar said, “We would not like to
limit our growth in this segment by any number but are hopeful
of taking at least a 30 per cent share of this mobile market
with our dedicated app and platforms.
“Our key focus is to make it so simple for the trader to
take derivative calls by virtually eliminating complex excels
and calculations, that these trades can be completed on
mobile. We hope to be the biggest broker in terms of mobile
derivative trading is concerned.”
In the next three years, Kumar said Reliance Securities
expects over 30 per cent of its broking business to come from
mobile users and mobile apps.
“We are investing heavily in technology – backed by Robo
analytics and big data – to induce a shift in trading and
enabling complex trade calls to be executed easily on our
mobile,” he added.