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Jane Street barred from Indian markets as regulator freezes $566 million

https://www.cnbc.com/2025/07/04/indian-regulator-bars-us-trading-firm-jane-street-from-accessing-securities-market.html
29•bwfan123•6h ago

Comments

bwfan123•6h ago
I am shocked by the size of the retail index options traders. They are selling put options naked without any underlying hedges and getting fleeced as a result.

Two strategies are detailed with trades: 1) expiry day price discrepancies between index options and underlying 2) expiry day painting the close

steveBK123•10m ago
My understanding is that it is the closest to legal gambling available in India and so the local market for gambling type behavior inflates the Indian options volume.
maest•8m ago
NIT: It's _marking_ the close. "Painting" has a different meaning.
monkeyelite•14m ago
The alternative claim - that large traders do not make decisions based on how their activity will move the market, is of course absurd.

It’s just political. Who is allowed to manipulate and who pays their dues to be able to.

alephnerd•11m ago
Not really.

In this case it was Millenium ratting out on Jane Street, but now the entire HFT industry is under extreme scrutiny by SEBI as a result [0]

[0] - https://www.sebi.gov.in/enforcement/orders/jul-2025/interim-...

steveBK123•7m ago
Yes as presented this behavior is clearly illegal. The next interesting question is if such an obviously illegal strategy was in use by JS, and they also produced the likes of SBF&co, what other related manipulation activity are they partaking in?
alephnerd•3m ago
This behavior became common in the Indian market after the newer HFTs in the Indian market like Millenium, Jane Street, Citadel, and others setup shop, and explains a LOT of the market weirdness that happened last year. DE Shaw India has been a much smarter player in Indian equities.

Millenium called it out and now everyone will be getting the hammer. Jane Street was also dumb enough to do this during the General Election, so now Indian regulators have to do something. This plus the Adani prosecution is a quick win to restore confidence in SEBI.

anonu•3m ago
Didn't Jane Street sue Millenium first? I think the lesson of all this is - don't sue over your trading strategy secrets.
SeanAnderson•12m ago
Ah yes, Adani Group is running a totally legit operation that just so happens to have a symbiotic relationship with the PM of India while posting +2000% gains in <2 years. Hindenburg's analysis? Slander!

But Jane Street? Running the most heinous of illegal operations. A clear example of manipulating India's markets. Ok, sure.

alephnerd•9m ago
SEBI is prosecuting Adani now [0]. The previous chairperson of SEBI was unceremoniously canned this March for this incident and the Adani incident, and the current chairperson (Tuhin Kanta Pandey) cleaned up Indian SoEs during their privatization during Modi 2.

[0] - https://www.reuters.com/sustainability/boards-policy-regulat...

SeanAnderson•5m ago
Thanks. That's great to hear.
walterbell•5m ago
https://web.archive.org/web/20250519053752/https://www.bnnbl...

> Jane Street sued Millennium, Schadewald and Spottiswood in April [2024], claiming the two traders had taken an “immensely valuable” trading strategy with them. It later emerged at a court hearing that the strategy involved India options and had generated $1 billion in 2023 profits for Jane Street.

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