Latest news with #tradingfirm
Reuters
2 days ago
- Business
- Reuters
India market regulator to widen probe into Jane Street, source says
MUMBAI, July 4 (Reuters) - India's markets regulator has widened its probe into alleged market manipulation by U.S. securities trading firm Jane Street to include other exchanges and indices, according to a source, after barring it from trading in the Indian markets earlier on Friday. The Securities and Exchange Board of India (SEBI) barred Jane Street from buying and selling securities in the Indian market and also seized $567 million of its funds. SEBI and Jane Street did not immediately respond to Reuters' requests for comment. (This story has been corrected to say that SEBI seized $567 million of Jane Street's fund, not $567, in paragraph 2)
Free Malaysia Today
2 days ago
- Business
- Free Malaysia Today
India regulator bars trading firm Jane Street Group
Jane Street said it disputes the findings of the Securities and Exchange Board of India Interim Order and will engage with the regulator. (Jane Street pic) MUMBAI : India's market regulator has temporarily banned US trading firm Jane Street Group from accessing the local securities market after a probe suggested it had allegedly engaged in 'illegal manipulation'. A trading boom in complex financial products over the past five years – helped by an influx of millions of new retail investors after the pandemic – has made India a top market for derivatives products. The surge in trading of Indian index options contracts has seen the world's most populous country attract interest from global high-speed trading giants, but also resulted in greater regulatory scrutiny. Yesterday night, the Securities and Exchange Board of India (SEBI) published a 105-page, interim order accusing Jane Street of market manipulation and restrained it from dealing in local securities. 'It has been shown above that at least on 21 days, the JS Group has prima facie engaged in illegal manipulation of the securities that comprise the BANKNIFTY and NIFTY indices, thereby vitiating market fairness and integrity, and illegally benefiting from their trading activities and positions in the index options markets,' SEBI said. 'This is an unusual case where prima facie, multiple liquid stocks with high retail participation have together been manipulated to facilitate the manipulation of the index options market, resulting in massive profits for the manipulators, at the cost of other participants and retail traders.' The regulator added that it would 'impound' ₹48.4 billion (US$567 million) from Jane Street, which it said was the 'total amount of unlawful gains' earned due to 'alleged violations'. However, it added that findings were interim in nature, and that if a detailed probe cleared the trading company, the money would be 'released for their use' and 'they shall be free to continue with their business'. Jane Street, in an emailed statement, said it 'disputes the findings of the SEBI Interim Order and will further engage with the regulator. Jane Street is committed to operating in compliance with all regulations in the regions we operate around the world'.
Yahoo
2 days ago
- Business
- Yahoo
Factbox-Who is Jane Street, the US trading firm facing heat in India?
By Jayshree P Upadhyay MUMBAI (Reuters) -India has barred one of the world's largest quant trading firms, Jane Street, from accessing its securities market after an investigation found it made "unlawful gains", taking the most stringent action ever against a foreign trading firm. The markets regulator also impounded $567 million from U.S.-based Jane Street, which said it disputed the findings. Here are facts about Jane Street and its India presence: WHAT IS JANE STREET? Jane Street has more than 3,000 staff in five offices across the United States, Europe, and Asia. It trades in stocks of 45 countries and is also rapidly increasing its presence in Hong Kong by purchasing more office space. Jane Street was established in 2000 and its annual revenues last year were $20.5 billion. It describes itself on its website as a firm that uses "sophisticated quantitative analysis and a deep understanding of market mechanics" to keep prices consistent and reliable." "We're a firm of puzzle solvers on and off the clock," it says. HOW DOES JANE STREET OPERATE IN INDIA Jane Street operates in India through four group entities, two of which are based in India, with the other two in Hong Kong and Singapore. The firm started its first India unit in December 2020. The other two Asian entities operate as foreign investors registered with India. THE SCALE OF ITS INDIA OPERATIONS Between January 2023 and March 2025, the four entities cumulatively made a profit of $5 billion by trading in equity options in India, the country's market regulator SEBI said in its order. Jane Street's large India presence first gained prominence last year when the firm sued a rival hedge fund, Millennium Management, accusing it of stealing a valuable in-house trading strategy. At a court hearing in the U.S., it was revealed that the strategy involved India options and had generated $1 billion in profits for Jane Street in 2023. The two firms settled the case in December. JANE STREET'S INDIA CHALLENGE India's market regulator says Jane Street as a group first aggressively bought significant quantities of banking stocks and futures, temporarily pushing up the banking index. Later, it aggressively sold large quantities of the same banking stocks and futures. This large scale buying influenced retail investors to invest, leading to market manipulation, SEBI said.
