The Futures Industry Association (FIA) has backed the Securities and Exchange Board of India’s (SEBI) proposed framework for managing strike prices of options contracts, while urging the regulator to introduce minimum standards, strike floors and safeguards for open interest across exchanges.

The global trade body representing derivatives market participants said SEBI’s proposal of allowing exchanges to add strike prices in line with market movement would improve price discovery and risk management for participants.

“We support the proposal to introduce new strikes intraday in the direction of price movement. This would address a longstanding operational and risk-management issue for market participants,” the FIA said in its submission to the regulator.

The association, which represents clearing firms, exchanges, trading firms and other derivatives market participants globally, said the framework would improve predictability and availability of option strikes, particularly during periods of heightened volatility.

Further, a consistent approach across exchanges would enhance operational efficiency.

However, FIA said the effectiveness of the framework would depend on “a high degree of consistency” in implementation across exchanges.

It recommended SEBI prescribe minimum common standards covering strike publication timing, terminology, file formats, intraday notification protocols, and transparency in strike addition rules.

It also flagged the need for uniform minimum requirements on the range and number of in-the-money (ITM) and out-of-the-money (OTM) strikes across products. Without such standards, FIA said, exchange-level discretion could lead to uneven outcomes and increased operational complexity for market participants.

A key concern raised by the association relates to existing positions. FIA cautioned against removing or disabling strikes where open interest continues to exist, as it could force participants into inefficient exits.

“If a strike is purged, disabled, removed or otherwise made unavailable while open interest remains, participants may be left with exercise or expiry as the only practical means of exit,” it said.

The body recommended that such strikes should remain available for trading, hedging or closing out positions until open interest is extinguished, adding that this would avoid unnecessary margin lock-up and preserve risk management flexibility.

FIA said intraday strike additions must be disseminated through existing automated exchange channels such as FIX and binary market data feeds to ensure seamless integration into trading systems without manual intervention.

The association further called for an annual review mechanism for strike frameworks, involving market participants, to ensure the structure remains relevant under changing market conditions.

It also suggested that SEBI provide a reasonable transition period for implementation so that exchanges and participants can upgrade systems and processes.

Published on June 16, 2026