Mutual Fund Industry Proposes Cash-Linked Futures Price To Curb NAV Volatility

There’s a secondary effect the industry hasn’t missed. If futures prices are tied directly to the cash auction outcome, exchanges may no longer need to keep derivatives trading open after the cash market shuts, purely to generate an independent close. That opens the door, at least in theory, to both markets closing at the same time. This would need much bigger changes to market infrastructure before it could happen, the report added.