New Delhi, May 22 -- After months of volatility triggered by regulatory changes, trading activity in index derivatives and options is showing signs of stabilisation, according to a report by rating agency ICRA.

The report noted that market participants have strategically recalibrated their trading approach following three consecutive months of decline in options volumes.

ICRA said "trading activity appears to be stabilising in index derivatives and options volumes, reflecting strategic recalibrations by market participants."

The regulatory measures, introduced in a phased manner starting November 2024, had led to a sharp contraction in trading volumes.

Between December 2024 and March 2025, the average daily premium turnover declined b...