Latest news with #highfrequencytrading
Reuters
21-07-2025
- Business
- Reuters
India markets regulator allows Jane Street to restart trading, sources say
July 21 (Reuters) - India's markets regulator has allowed Jane Street to restart trading after the U.S. high-frequency trading firm deposited $567 million, two sources aware of the matter told Reuters on Monday.
Bloomberg
17-07-2025
- Business
- Bloomberg
Big Take: Why Regulators Are Watching Jane Street
Jane Street is one of Wall Street's most profitable and secretive firms. And when Indian regulators accused it of market manipulation earlier this month, it rocked the finance world. On today's Big Take podcast, Bloomberg finance reporter Katherine Doherty joins host Sarah Holder to go inside Jane Street's unique trading strategy and what new regulatory scrutiny could mean for the high frequency trading industry.
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.
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.
