Latest news with #financialregulator
Bloomberg
6 days ago
- Business
- Bloomberg
ASX Shares Dive After US Rival Cboe Challenges Market Dominance
ASX Ltd shares tumbled the most in two years as potential market competition from Cboe Global Markets Inc and regulatory issues weigh on Australia's embattled main exchange operator. The stock plunged as much as 11% on Thursday, the most since June 2023, after the nation's financial regulator said it was in the final stages of considering a listing market application from Cboe's Australian unit. The move would allow local companies to list on an exchange run by the US rival, threatening to end ASX's local market domination amid ongoing operational concerns.
Bloomberg
15-07-2025
- Business
- Bloomberg
Swiss Banking Watchdog Who Warned Credit Suisse Is Stepping Down
Thomas Hirschi, a crucial behind-the-scenes actor during the Credit Suisse crisis, is leaving the Swiss financial regulator Finma to pursue a new career. Hirschi, who was born in 1975, has led the watchdog's banks division since 2022 and the supervision of asset managers before that. He will depart on Aug. 31, Finma said in a statement on Tuesday.
Zawya
08-07-2025
- Business
- Zawya
Jane Street to challenge India ban, says it engaged in basic arbitrage
BENGALURU: Jane Street has told staff it will contest a ban by India's financial regulator which has accused the U.S. high-frequency trading giant of market manipulation, adding that its practices in question were "basic index arbitrage trading". Jane Street said it was "beyond disappointed" by what it called "extremely inflammatory" accusations from the Securities and Exchange Board of India (SEBI) and is working on a formal response, according to an internal email sent to employees over the weekend that was seen by Reuters. The email did not elaborate on the potential action that Jane Street might take. SEBI on Friday barred the firm from buying and selling securities in the Indian market and seized $567 million of its funds. "The order clearly lays out SEBI's prima facie case and addresses all relevant areas and questions," SEBI said in an official comment to Reuters. At this stage, we have nothing to add to what is already contained, explained, and reasoned in that order, SEBI added. SEBI in its order had 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 said. Over the past three years, India's derivatives market has had explosive growth as retail investors swarmed in and is now the world's largest. But that has also led to losses for many ordinary investors, which has become a concern for regulators. In its email, Jane Street said arbitrage trades were "a core and commonplace mechanism of financial markets that keeps the prices of related instruments in line." SEBI's order that this activity is "prima facie manipulative" disregards the role of liquidity providers and arbitrageurs in markets, Jane Street added. SEBI did not respond to Reuters' requests for comment. The proprietary trading firm also took issue with SEBI's claims that it had failed to respond adequately to the regulator's concerns, saying the firm's executives had met with regulators and exchange officials multiple times. "Once again, we left this process feeling that we had reached an understanding of the concerns and reflected them in modifications to our trading behaviour." "Since February, we have made ongoing efforts to communicate with SEBI and have been consistently rebuffed," the email said. India accounted for roughly 60% of global equity derivative trading volume in May, according to the Futures Industry Association. Data out on Monday showed that equity derivative losses for India's retail traders widened by 41% to 1.06 trillion Indian rupees ($12.4 billion) in the financial year that ended in March. SEBI Chairman Tuhin Kanta Pandey also said on Monday that the regulator was enhancing its surveillance to scrutinise manipulation in derivatives trading, but added that there may not be many more cases like Jane Street. Other overseas proprietary trading firms that are active in India include Citadel Securities, IMC Trading, Millennium and Optiver.
Reuters
07-07-2025
- Business
- Reuters
Jane Street to challenge market manipulation charges by Indian regulator, email shows
July 7 (Reuters) - Jane Street plans to contest a finding by India's financial regulator that the U.S. trading firm engaged to manipulate the country's markets, according to the company's internal email seen by Reuters. Jane Street's email sent to its employees said it was "beyond disappointed" by the regulator's "extremely inflammatory" accusations and was working on a formal response. On Friday, the Securities and Exchange Board of India barred the firm from buying and selling securities in the Indian market and also seized $567 million of its funds. SEBI has widened an investigation into alleged market manipulation by Jane Street to include other indexes and exchanges, a source told Reuters last week. "It's deeply upsetting to see the firm mischaracterised this way," the Jane Street email read. "Once again, we left this process feeling that we had reached an understanding of the concerns and reflected them in modifications to our trading behaviour." "Since February, we have made ongoing efforts to communicate with SEBI and have been consistently rebuffed." The regulator alleged 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. The regulator's investigation tracked Jane Street's trading patterns over more than two years. SEBI did not immediately respond to Reuters requests for comment outside regular hours. India's markets regulator is enhancing its surveillance to scrutinize manipulation in derivatives trading, its chairman said on Monday. India is the world's largest derivatives market, accounting for nearly 60% of global equity derivative trading volumes of 7.3 billion trades in April, the Futures Industry Association says. Financial Times was the first to report the news about Jane Street's plan to contest the finding.
Bloomberg
04-07-2025
- Business
- Bloomberg
Why Regulators Are Cracking Down on India's Giant Options Market
India has gone from being a small player in the highly speculative equity derivatives market to the world's largest, all within just five years. Daily turnover in the market – which includes options trading – now sits at about $3 trillion. The markets regulator has become increasingly concerned about this segment of the market, particularly because of its sudden popularity among inexperienced retail investors chasing quick returns. It has previously warned that these traders could face big losses when bets go wrong, particularly against larger financial market players.
