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Jane Street was caught manipulating the India derivates market recently.

by windex 1y ago

thehappyfellow 1y ago
source?
- dbu21 1y ago
  JS is being investigated. https://www.reuters.com/sustainability/boards-policy-regulation/india-regulator-probes-jane-streets-derivative-trades-over-three-years-sources-2025-06-09/ https://www.reuters.com/sustainability/boards-policy-regulat...
- ing33k 1y ago
  SEBI’s investigation into Jane Street is ongoing. Sources: https://www.reuters.com/sustainability/boards-policy-regulation/india-regulator-probes-jane-streets-derivative-trades-over-three-years-sources-2025-06-09/ https://www.reuters.com/sustainability/boards-policy-regulat... https://www.business-standard.com/finance/news/explained-jane-street-trading-revenue-global-india-sebi-probe-125061000933_1.html https://www.business-standard.com/finance/news/explained-jan... https://www.outlookbusiness.com/markets/jane-street-under-sebi-lens-for-algo-trade-strategies-in-nifty-bank-nifty https://www.outlookbusiness.com/markets/jane-street-under-se... https://www.rediff.com/business/report/why-is-sebi-probing-a-trading-giant/20250621.htm https://www.rediff.com/business/report/why-is-sebi-probing-a...
chollida1 1y ago
Allegedly. And if you read anything about the case its clearly in a very gray area. Their actions are what you'd expect any firm to do to hedge their exposure. Its just that they were so large and the Indian stock market is relatively so small that they're hedging moved the market. So the question is, was their market moving hedging actual market manipulation or was it just the same thing every other quant firm would do in the same situation to hedge out their option exposure? https://libgen.li/edition.php?id=151275376 https://libgen.li/edition.php?id=151275376 Here's a decent description of the issue.
- thehappyfellow 1y ago
  Thank you, this makes much more sense and it's a classic issue Matt Levine's readers will be familiar with. Allegedly being investigated is also quite far from "been manipulating markets", I appreciate the clarification.
- butlike 1y ago
  Your comment doesn't make a whole lot of sense to me. By definition, doesn't hedging the market ALWAYS move the market? The indian market was so small the movement was perceptible, but hedging the US market would also move the market, albeit imperceptibly, right?
  - WorkerBee28474 1y ago
    If you want to go down that path, buying a single share of literally anything will also move the market, albeit usually imperceptibly.
- verteu 1y ago
  > Their actions are what you'd expect any firm to do to hedge their exposure No, their actions were the opposite. They were pushing the price in the same direction as their derivatives holding. A hedge would push it in the opposite direction. (Eg: If you're long calls, you would hedge by selling the underlying, bringing its price down.)
Etheryte 1y ago
Also, the absolutely hilarious fact that Jane Street lawyers were instructed not to say the country's name out loud in court to protect trade secrets, yet they utterly failed to do so on multiple occasions.
coliveira 1y ago
This and what the article refers to are just two examples of the kind of thing this company considers to be their "business". For another example, Sam Bankman-Fried and his helper Caroline Ellison came from there. They're always looking for schemes to add billions to their accounts, morality be damned.

Jane Street was caught manipulating the India derivates market recently.

by windex 1y ago

Jane Street was caught manipulating the India derivates market recently.

thehappyfellow 1y ago

source?

dbu21 1y ago
JS is being investigated. https://www.reuters.com/sustainability/boards-policy-regulation/india-regulator-probes-jane-streets-derivative-trades-over-three-years-sources-2025-06-09/ https://www.reuters.com/sustainability/boards-policy-regulat...
ing33k 1y ago
SEBI’s investigation into Jane Street is ongoing. Sources: https://www.reuters.com/sustainability/boards-policy-regulation/india-regulator-probes-jane-streets-derivative-trades-over-three-years-sources-2025-06-09/ https://www.reuters.com/sustainability/boards-policy-regulat... https://www.business-standard.com/finance/news/explained-jane-street-trading-revenue-global-india-sebi-probe-125061000933_1.html https://www.business-standard.com/finance/news/explained-jan... https://www.outlookbusiness.com/markets/jane-street-under-sebi-lens-for-algo-trade-strategies-in-nifty-bank-nifty https://www.outlookbusiness.com/markets/jane-street-under-se... https://www.rediff.com/business/report/why-is-sebi-probing-a-trading-giant/20250621.htm https://www.rediff.com/business/report/why-is-sebi-probing-a...

chollida1 1y ago

Allegedly. And if you read anything about the case its clearly in a very gray area. Their actions are what you'd expect any firm to do to hedge their exposure. Its just that they were so large and the Indian stock market is relatively so small that they're hedging moved the market. So the question is, was their market moving hedging actual market manipulation or was it just the same thing every other quant firm would do in the same situation to hedge out their option exposure? https://libgen.li/edition.php?id=151275376 https://libgen.li/edition.php?id=151275376 Here's a decent description of the issue.

thehappyfellow 1y ago
Thank you, this makes much more sense and it's a classic issue Matt Levine's readers will be familiar with. Allegedly being investigated is also quite far from "been manipulating markets", I appreciate the clarification.
butlike 1y ago
Your comment doesn't make a whole lot of sense to me. By definition, doesn't hedging the market ALWAYS move the market? The indian market was so small the movement was perceptible, but hedging the US market would also move the market, albeit imperceptibly, right?
- WorkerBee28474 1y ago
  If you want to go down that path, buying a single share of literally anything will also move the market, albeit usually imperceptibly.
verteu 1y ago
> Their actions are what you'd expect any firm to do to hedge their exposure No, their actions were the opposite. They were pushing the price in the same direction as their derivatives holding. A hedge would push it in the opposite direction. (Eg: If you're long calls, you would hedge by selling the underlying, bringing its price down.)

Etheryte 1y ago

Also, the absolutely hilarious fact that Jane Street lawyers were instructed not to say the country's name out loud in court to protect trade secrets, yet they utterly failed to do so on multiple occasions.

coliveira 1y ago

This and what the article refers to are just two examples of the kind of thing this company considers to be their "business". For another example, Sam Bankman-Fried and his helper Caroline Ellison came from there. They're always looking for schemes to add billions to their accounts, morality be damned.