Whalesbook
London-headquartered high-frequency trader (HFT) Qube Research & Technologies (QRT) is establishing a presence in GIFT City, boosting India's sole International Financial Services Centre (IFSC) as a global trading hub.
First Global HFT in GIFT City
QRT, known for its low public profile and proprietary trading, has received in-principle approval from the IFSC Authority (IFSCA). This registration makes it the first global HFT to set up within the special economic zone (SEZ).
Tax Advantages Spur Expansion
QRT confirmed the expansion, stating, "In addition to our Mumbai office, we are in the process of establishing an office in GIFT City." The firm plans to launch a Category III fund for sophisticated trading strategies. Operating within the GIFT-IFSC international zone allows QRT to receive tax exemptions on income from derivatives trading and related securities transactions. While other HFTs operate from GIFT City's domestic tariff area (DTA), QRT's SEZ registration provides more extensive tax advantages, including a full exemption on derivative gains, according to Deloitte India partner Rajesh Gandhi.
Growing HFT Hub
GIFT City CEO Sanjay Kaul noted the IFSC's increasing importance as a hub for HFT and proprietary trading. Firms such as Jump Trading, Tower Research Capital, and Graviton Research Capital already operate from the DTA segment, while others engage through remote trading.
Regulatory Clarity and Substance
Experts point out that while HFTs from Mauritius and Singapore can also access tax exemptions, concerns about India's anti-avoidance rules and OECD norms have prompted firms to seek greater certainty. Establishing operations in GIFT-IFSC offers improved regulatory predictability and protection, provided firms maintain adequate substance and key personnel within GIFT City. This structure offers offshore-like tax treatment and operational flexibility for leveraged, derivatives-focused strategies, according to Singhania & Co. managing partner Rohit Jain. The tax benefits are clearly written into domestic law, offering more certainty than offshore structures that depend on treaty eligibility and could face General Anti-Avoidance Rules (GAAR) challenges.