Collateral Damage: Proprietary traders feel the squeeze under RBI's new rules
- Posted on July 3, 2026
- By Business News Today
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- 1 min read
Collateral Damage: Proprietary traders feel the squeeze under RBI's new rules
New RBI rules demanding 100% collateral for bank guarantees from July 1 are set to significantly impact proprietary trading desks. These firms, crucial to market turnover, face increased funding costs and squeezed profits. Industry experts warn of reduced trading volumes and potential job losses as the cost of capital rises substantially, prompting some firms to seek regulatory review.