Beyond Jane Street, global trading firms vie for India's lucrative derivatives market: Report
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It is not just the Jane Street Group LLC that saw promise in India's lucrative derivatives markets. There are half-a-dozen other global trading giants which are fighting for a larger pie. Among them are US-based Citadel Securities, IMC Trading, Millennium and Netherlands-based Optiver.A Reuters report said that these firms are ratcheting up their presence in India's booming derivatives markets, fuelling a hiring spree and pushing exchanges to improve technology.The firms' hiring plans, being reported for the first time, come amid expectations that large domestic consumer and investor bases will help shield India from global turmoil sparked by the trade policies of U.S. President Donald Trump, the report said.India, a South Asian power house, accounted for nearly 60% of global equity derivative trading volumes of 7.3 billion in April, this report said, quoting the Futures Industry Association though its regulators say notional turnover of the contracts has grown 48 times since March 2018.The gold rush from international operators comes in light of U.S-based Jane Street's success, though Jane Street has hit a regulatory wall and is under interim ban from accessing the Indian markets.On Thursday, Securities and Exchange Board of India (Sebi) in an interim order held Jane Street in violation of rules, holding the company for manipulating derivatives (F&O) markets and making unlawful gains worth up to Rs 36,500 crore. Media reports have cited that it may increase the scope of its investigation to more indices and exchanges.The foreign trading companies are taking a leaf out of Jane Street's books to consolidate their presence in India."We have seen competition increasing both on the trading front, where you see more players going for the same opportunities, and on the job market as well," the Reuters report said quoting Jocelyn Dentand of global high-speed trader IMC Trading. The firm plans to grow its team by more than 50% by the end of 2026 to stand at more than 150, added Dentand, the managing director of its India unit.Citadel Securities, a market-making firm founded by well-known investor Kenneth Griffin, runs a leaner team of around 10, this report highlighted.Quoting sources familiar with the firm's plans, Reuters said that Citadel Securities also recently hired chief operating officer for India as well as a country head of trading, building on its endeavor to seek talent.Hedge fund Millennium is expanding its India desk via Dubai and Singapore, a source told Reuters.Earlier, Jane Street Group made headlines for offering a Rs 4.3-crore annual package to an IIT Madras student prior to the Sebi ban order. The viral news of this extraordinary offer highlighted Jane Street's lucrative compensation and rigorous recruitment process, which aligns with its global practice of hiring from top-tier universities such as MIT, Harvard, Cambridge, Oxford, Princeton, and Stanford.
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