Latest news with #arbitrage
Bloomberg
18-07-2025
- Business
- Bloomberg
Hedge Funds Reap Windfall as $10 Billion Hess Deal Bet Pays Off
Hedge fund managers including Citadel Advisors, Adage Capital Management and HBK Investments are reaping a windfall as the year's largest pending corporate tie-up — Chevron Corp.'s $53 billion takeover of Hess Corp. — finally crosses the finish line. Firms that specialize in merger arbitrage — essentially betting on a deal's outcome — have long wagered that the acquisition would go through, despite a challenge from Exxon Mobil Corp. that threw the transaction into limbo for 20 months. The deal's closure on Friday following a ruling by an arbitration court marks a huge victory to those who had stuck to their bets.
Bloomberg
15-07-2025
- Business
- Bloomberg
Arb Trades Are Back in Vogue in Latest Ether Push
David Pan takes a deeper look at the how traders are trying to shake Ether from its doldrums. Bitcoin's record-breaking rally has hedge funds dusting off a tried-and-true arbitrage strategy for the market's second-largest digital asset, Ether.
Khaleej Times
14-07-2025
- Business
- Khaleej Times
Jane Street deposits $567 million so it can resume India trading
U.S. high-frequency trading giant Jane Street, which has been accused of market manipulation by Indian authorities, has deposited $567 million in an escrow account so that it can resume trading in the country. The Securities and Exchange Board of India (SEBI) barred the firm this month from buying and selling securities in the Indian market and put a freeze on $567 million of its funds. Jane Street was only to be allowed to resume trading if an equivalent amount was deposited in an account that gives the regulator rights over the money until its investigation is complete. SEBI said in a statement on Monday that the money had been transferred and it was examining the company's request that restrictions placed on it be lifted. "The money has been deposited in good faith. The firm continues to contest the order and will send a formal response rebutting the allegations in coming weeks," said a source with direct knowledge of the matter. Jane Street did not immediately respond to a Reuters request for comment. It has told its staff it plans to contest SEBI's allegations and that the practices in question were "basic index arbitrage trading". Even with the ban lifted, the tussle with SEBI is expected to have a huge impact on its business in India, which is the world's biggest derivatives market. According to a separate source with direct knowledge of the matter, Jane Street does not intend to trade in Indian options while the dispute is unresolved. Options have been Jane Street's main line of business in India with its exposure to equity derivatives here roughly five to seven times its exposure to regular stocks, said the first source. SEBI could send instructions to India's exchanges to lift the ban sometime this week, said a third source, adding that the bourses will be directed to monitor Jane Street's trades very closely. The sources were not authorised to speak to media and declined to be identified. SEBI has alleged that Jane Street bought large quantities of constituents in India's Bank Nifty> index in the cash and futures markets to artificially support the index in morning trade, while simultaneously building large short positions in index options which were exercised or allowed to expire later in the day. The regulator, which tracked Jane Street's trading patterns for more than two years, has also widened its investigation to include other indexes and exchanges, a source has previously said. Bourse operator BSE gained 3.2% on Monday on the view that a lifting of the ban could bring more liquidity into the market. Explosive growth in Indian derivatives trading over the past three years has prompted much consternation among authorities about the fallout for retail investors. The South Asian country accounted for roughly 60% of the world's equity derivative trading volume in May, and in the past financial year equity derivative losses for India's retail traders widened by 41% to 1.06 trillion rupees ($12.3 billion).
Zawya
14-07-2025
- Business
- Zawya
Jane Street deposits $567mln so it can resume India trading
U.S. high-frequency trading giant Jane Street, which has been accused of market manipulation by Indian authorities, has deposited $567 million in an escrow account so that it can resume trading. The Securities and Exchange Board of India (SEBI) barred the firm this month from buying and selling securities in the Indian market and put a freeze on $567 million of its funds. It was only to be allowed to resume trading if an equivalent amount was deposited in an account that gives the regulator rights over the money until its investigation is complete. SEBI said in a statement on Monday that the money had been transferred and it was examining Jane Street's request that restrictions placed on it be lifted. The company has told its staff it plans to contest SEBI's allegations and that the practices in question were "basic index arbitrage trading". "The money has been deposited in good faith. The firm continues to contest the order and will send a formal response rebutting the allegations in coming weeks," said the source with direct knowledge of the matter. It was not immediately clear when Jane Street might resume trading. The firm does not intend to trade in Indian options while the dispute is unresolved, said a separate source. The sources were not authorised to speak to media and declined to be identified. Jane Street did not immediately respond to a Reuters request for comment. SEBI alleges that Jane Street bought large quantities of constituents in India's Bank Nifty> index in the cash and futures markets to artificially support the index in morning trade, while simultaneously building large short positions in index options which were exercised or allowed to expire later in the day. The regulator, which tracked Jane Street's trading patterns for more than two years, has also widened its investigation to include other indexes and exchanges, a source has previously said.
Reuters
14-07-2025
- Business
- Reuters
Jane Street deposits $567 million so it can resume India trading, sources say
July 14 (Reuters) - Jane Street, which has been accused of market manipulation by Indian authorities, has deposited $567 million in escrow accounts which will allow the U.S. firm to resume trading, two sources with direct knowledge of the matter said on Monday. The Securities and Exchange Board of India (SEBI) this month barred the U.S. high-frequency trading giant from buying and selling securities in the Indian market and put a seize on $567 million of its funds. Jane Street would only be allowed to resume trading if an equivalent amount of funds were deposited in an escrow account. The company has told its staff it plans to contest SEBI's allegations and that the practices in question were "basic index arbitrage trading". "The money has been deposited in good faith. The firm continues to contest the order and will send a formal response rebutting the allegations in coming weeks," said one of the sources. Both sources were not authorised to speak to media and declined to be identified. Jane Street and the Securities and Exchange Board of India did not immediately respond to a Reuters request for comment. SEBI alleges that Jane Street bought large quantities of constituents in India's Bank Nifty (.NSEBANK), opens new tab> index in the cash and futures markets to artificially support the index in morning trade, while simultaneously building large short positions in index options which were exercised or allowed to expire later in the day. The regulator, which tracked Jane Street's trading patterns for more than two years, has also widened its investigation to include other indexes and exchanges, a source has said. Jane Street does not intend to trade in Indian options while the dispute is unresolved, said one of the sources.
