- India’s new closing auction is handling its largest institutional-flow test since launching earlier this month.
- The MSCI quarterly rebalance involves about $4 billion in trades and is expected to expose whether the mechanism can absorb large passive-fund orders without sharp price swings.
- Traders remain unsettled by the price volatility seen since the auction’s launch.
Quotes
“India’s contentious new closing auction system is about to face its biggest challenge yet as billions of dollars in passive-fund trades flow through it.”
“The quarterly rebalancing of MSCI Inc. indexes on Monday will be a key test of whether the mechanism can absorb large institutional orders without producing the sharp price swings that have unsettled traders since its launch earlier this month.”