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Nithin Kamath says retail is killing prop desk profits in auction trades
Economy
Published on 29 April 2026
Auction liquidity surged as spreads tightened fast
Zerodha founder Nithin Kamath says allowing retail investors into stock exchange auction markets is changing the playing field for proprietary desks. With more retail participation, liquidity has improved and spreads have narrowed, cutting off the “easy profit” edge that specialized traders relied on. The result: auctions are becoming more efficient, leaving prop firms under pressure.
- Retail entry into auction markets is boosting liquidity
- Tighter spreads are reducing prop desk advantage
- Auction trading is shifting toward a more efficient market
- Specialized “easy profits” model is losing relevance
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times