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Jane Street barred from Indian markets as regulator freezes $566M
- bwfan123 1y agoI am shocked by the size of the retail index options traders. They are selling put options naked without any underlying hedges and getting fleeced as a result. Two strategies are detailed with trades: 1) expiry day price discrepancies between index options and underlying 2) expiry day painting the close
- deleted 1y ago[deleted]
- steveBK123 1y agoMy understanding is that it is the closest to legal gambling available in India and so the local market for gambling type behavior inflates the Indian options volume.
- deleted 1y ago[deleted]
- throwaway2037 1y agoWhy is this down-voted? Thank you to point out the elephant in the room.
- kamaal 1y agoActually, There are more people on Sports betting sites(Dream11, Jungly Rummy etc) than people who have hold Demat accounts.
- maest 1y agoNIT: It's _marking_ the close. "Painting" has a different meaning.
- sokoloff 1y agoSelling naked puts doesn’t seem particularly outrageous. About half the time that I want to buy a position, I’ll sell a series of put options just OoM until I get assigned the shares I want, collecting small premium along the way. My “hedge” in this case is that I want to own the shares. (I’m short vs where I want to be.)
- Fade_Dance 1y agoFutures index option traders are not looking to get assigned a basket of hundreds of stocks. They are cash settled, for one, so all that gets assigned is a profit or loss.
- Shocka1 1y agoYour comment leaves out some key details that need mentioned as not to confuse anyone. I'd like to clarify that this is true for a future alone (if cash settled), but not a futures option. Selling one futures option and having it expire ITM simply gives the trader a one contract long position in the underlying future contract. OTM is full collection of the premium sold as usual. I've done both many times over the years. One legit strategy is selling a futures option with the intent to be long the contract, just like someone would do with selling an equity put option with intent to own 100 shares. You can most definitely do this as a retail trader and do extremely well in many cases, but it's also very easy to go to $0 and is not for the light hearted.
- mhh__ 1y agoThis is why the flow is so valuable. The volume is pretty big, the spreads are enormous and the traders are terrible.
- fouziat87 1y ago[dead]
- deleted 1y ago[deleted]
- monkeyelite 1y agoThe alternative claim - that large traders do not make decisions based on how their activity will move the market, is of course absurd. It’s just political. Who is allowed to manipulate and who pays their dues to be able to.
- throwaway2037 1y agoFirst part: Yep, 100% agree. Second part: Typical HN when discussing public markets. Zero evidence provided, except "my tin foil hat works".
- nobodyandproud 1y agoJanestreet and its graduates earned a reputation, and it’s not a flattering one.
- monkeyelite 1y agoThe second part follows logically. If large movements of money manipulate the market then when would “manipulation” be used to claim an actor was misbehaving? 1) they did a special kind of manipulation clearly against the rules 2) they didn’t do anything different, but the regulators decided they didn’t want them to. 2 would be exactly what I said - their activity has acquired political interest.
- alephnerd 1y agoNot really. In this case it was Millenium ratting out on Jane Street (edit - other way around), but now the entire HFT (Edit: hedge funds. Thanks for the callout avvt4avaw) industry is under extreme scrutiny by SEBI as a result [0] [0] - https://www.sebi.gov.in/enforcement/orders/jul-2025/interim-order-in-the-matter-of-index-manipulation-by-jane-street-group_95040.html https://www.sebi.gov.in/enforcement/orders/jul-2025/interim-...
- steveBK123 1y agoYes as presented this behavior is clearly illegal. The next interesting question is if such an obviously illegal strategy was in use by JS, and they also produced the likes of SBF&co, what other related manipulation activity are they partaking in?
- SeanAnderson 1y ago[flagged]
- alephnerd 1y agoSEBI is prosecuting Adani now [0] (edit: correct link [1] - they are going after Adani Group's holding funds in Marutius). The previous chairperson of SEBI was unceremoniously canned this March for this incident and the Adani incident, and the current chairperson (Tuhin Kanta Pandey) cleaned up Indian SoEs during their privatization during Modi 2. Edit: cannot reply below Indian regulators won't settle with Adani Group. They have become a political liability due to how slapshot they played AND because the Bihar Elections are coming up, so skinning some goats (balli ka bakra) is a quick win - the RJD, INC, and TMC attacks on Modi+Adani are landing in Bihar and much of the rest of India. Every Indian government does this - such as Kingfisher Group, Sahara Group, Gitanjali Group, etc. Treat it the same way as Truong My Lan's case in Vietnam and Wanda Group's case in China. [0] - https://www.reuters.com/sustainability/boards-policy-regulation/indian-regulator-accuses-adani-nephew-insider-trading-case-he-seeks-settle-2025-05-02/ https://www.reuters.com/sustainability/boards-policy-regulat... [1] - https://www.reuters.com/sustainability/boards-policy-regulation/india-threatens-two-offshore-funds-holding-adani-shares-with-penalties-document-2025-05-19/ https://www.reuters.com/sustainability/boards-policy-regulat...
- SeanAnderson 1y agoThanks. That's great to hear.
- ericmay 1y agoThey'll settle
- pseudo0 1y agoThat's not what the article says. > Adani, the nephew of Gautam Adani, was sent a notice by the Securities and Exchange Board of India (SEBI) last year which alleged he shared information about Adani Green's (ADNA.NS), 2021 acquisition of SoftBank-backed SB Energy Holdings with his brother-in-law before the deal was announced, according to a source and the document. Some Adani relative is getting a slap on the wrist for a $100k insider trading violation. This has nothing to do with the main issues raised by Hindenburg.
- walterbell 1y agohttps://web.archive.org/web/20250519053752/https://www.bnnbloomberg.ca/business/international/2024/12/05/jane-street-millennium-settle-india-options-trade-secrets-case/ https://web.archive.org/web/20250519053752/https://www.bnnbl... > Jane Street sued Millennium, Schadewald and Spottiswood in April [2024], claiming the two traders had taken an “immensely valuable” trading strategy with them. It later emerged at a court hearing that the strategy involved India options and had generated $1 billion in 2023 profits for Jane Street.
- brcmthrowaway 1y agoThis is interesting. Anyone know what they offered these traders? Can't be more than Zucks 100mn offer!
- lordnacho 1y agoI'm amazed they managed to move firms. Suppose you know how the strategy works, and it's like what SEBI says. 1) How do you approach mlp? They don't just give you an account, they have risk officers, compliance officers, and general strategy due diligence. 2) If you manage to get past it, what then? Say mlp just asks some superficial questions and sees the dollar signs. Are you going to do the same thing? You have to think the compliance people will complain, surely? 3) So maybe the strategy they actually approached with was a parasitical strategy? If you know which stocks will be bought and sold by JS, maybe you do jump in first? Especially as you'll know particulars like when it happens, which stocks are selected, and how to spot them.
- pgwhalen 1y ago
- balderdash 1y agoHaving formerly worked for an NYSE Specialist firm the role of market making is incredibly important, but many large-scale HFTs today operate in ways that either stretch the legal boundaries or exploit regulatory gaps. Many practices arguably amount to market manipulation in spirit, even if technically legal. Candidly, the regulators are either too lazy, stupid, ill equipped or uninterested to do anything about it.
- zeroCalories 1y agoDoes it really matter? I've done nothing but buy and hold at reasonable prices, and market manipulation has never affected my trades. This seems like finance bros fucking finance bros, which is solidly in the "who cares" category of my life.
- ycombinatrix 1y agoOur 401k & pensions are managed by "finance bros"
- sokoloff 1y agoI hope mine is not managed by someone dumb enough to keep handing money over to Jane Street on such a simple scheme. If they are that dumb, I need to move my money way more than I need Jane Street punished.
- ycombinatrix 1y agoGood luck moving "your" money out of a shared pension plan.
- sokoloff 1y agoFor a defined benefit plan, I don’t need to care. For defined contribution plan, I care (but can usually choose investments). I personally only have 401k, IRA, and after-tax investments, no pension.
- throwaway314155 1y agoNews that portrays Jane Street in a negative light on HN? This should be good.
- landl0rd 1y agoExtremely funny that Jane Street's "elite strategy" leaked and it's just banging the close lol
- dmix 1y agoThey probably run every sort of strategy available in various markets. The indian one they probably played a much riskier hand thinking they could get away with it.
- pclmulqdq 1y agoTower got caught doing the same thing about 10 years ago. Apparently the strategy was literally called "the hammer" or something that was far too on-the-nose, but it was exploiting other strategies at the firm that bought a ton in the morning and hammered the close - "the hammer" made that leg profitable. I assume Jane Street's version of this may have been unintentional: get your big position to do a bunch of intraday trading without worrying about being too short, then exit at the end of the day. This can work because markets tend to go up or stay flat intraday, meaning you get to use typical strategies in a jurisdiction that doesn't like when you go short via superposition. Then along the way, someone figured out this options trade and didn't realize their own behavior was influencing the price of the option (oops, I guess it wasn't superposition all along).
- alpark3 1y agoYou're thinking of Optiver's The Hammer, though every HFT firm has basically done or is doing something like this. [1] Jane Street's version of this was absolutely intentional. [1] https://www.reuters.com/article/business/high-frequency-trader-optiver-pays-14-million-in-oil-manipulation-case-idUSBRE83J012/ https://www.reuters.com/article/business/high-frequency-trad...
- pclmulqdq 1y agoAh, my mistake. Optiver was The Hammer. The tower regulatory action was for spoofing. https://www.cftc.gov/PressRoom/PressReleases/8074-19 https://www.cftc.gov/PressRoom/PressReleases/8074-19
- bigbacaloa 1y ago[dead]
- cs702 1y agoAccording to Indian regulators, every trading day Jane Street would: 1) buy large volumes of stocks and/or stock futures that are part of an index tracking India’s banking sector, early in the day, 2) subsequently place large options trades, betting that the index would decline or volatility would spike later in the day, and 3) later in the day, cash out of the large long positions, dragging the index lower, making far more money on the options trades than on the long positions. Jane Street can and likely will claim the firm was only arbitraging away pricing inefficiencies, nothing more, nothing less. It was just business as usual, etc., etc. However, given the scale of the operation, Jane Street's actions sure look like textbook market manipulation. Calling it like I see it.
- stefan_ 1y agoHardly a sophisticated high tech HFT operation. Totally illegal of course, except in places that maybe don't have the regulatory rigeur.
- cs702 1y agoHardly a sophisticated strategy, indeed, but Jane Street was earning like $1B/year of profit on it, according to https://news.ycombinator.com/item?id=44483691 https://news.ycombinator.com/item?id=44483691
- whatever1 1y agoSomeone has to pay for the OCAML maintenance
- ldjkfkdsjnv 1y agoall that OCAML we only hire the smartest is often a veil for what is really a simpler operation that is borderline illegal. probably alot of employees dont even really understand the systems they work on
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- bobvylan 1y ago[dead]
- wfleming 1y agoI look forward to the Matt Levine's section on this in tomorrow's Money Stuff.
- kjetijor 1y agoI'm very reminded of this Money Stuff: https://www.bloomberg.com/opinion/articles/2024-04-18/jane-street-wants-its-secrets-back https://www.bloomberg.com/opinion/articles/2024-04-18/jane-s... Probably unrelated, no mention of Millennium.
- laserson 1y agohttps://www.bloomberg.com/opinion/newsletters/2025-07-07/jane-street-s-indian-options-trade-was-too-good https://www.bloomberg.com/opinion/newsletters/2025-07-07/jan...
- miohtama 1y agoOn Indian options markets > India retail investors make up 35% of options trades. Institutions, seeking to hedge their risk or profit for their companies’ accounts, handle the rest. Regulators are alarmed that regular folk are bypassing the tried-and-true way to build wealth: buying and holding stocks and mutual funds. > Instead they’re engaging in pure speculation. The average time an Indian trader holds an option is less than Instead they’re engaging in pure speculation. The average time an Indian trader holds an option is less than 30 minutes, according to data from mutual fund provider Axis Asset Management Co. “If you want to gamble, if you need diabetes and high blood pressure, then go into this market,” Ashwani Bhatia, a board member on the nation’s top stock market regulator, said last year. https://economictimes.indiatimes.com/markets/options/indias-options-trading-boom-hides-billions-of-losses-for-retail-traders/articleshow/107653413.cms?from=mdr https://economictimes.indiatimes.com/markets/options/indias-...
- bwfan123 1y agoThere were fools in size in that market, and they got fleeced. What were they doing ? If anything, JS was teaching them a lesson - and now, with this action, they will be bolder in their foolishness, and someone else will separate them from their money. Index options markets are not for the unsophisticated to play in except as a casino.
- 0xDEAFBEAD 1y agoHow about some sort of tax on financial asset transactions?
- SpicyLemonZest 1y agoIndia has one (https://en.wikipedia.org/wiki/Securities_Transaction_Tax https://en.wikipedia.org/wiki/Securities_Transaction_Tax). Retail investors don't choose to day trade options because of some rigorous financial analysis, so they aren't going to be discouraged by any feasible transaction tax rate.
- ankit219 1y agoIndia has had a history of market manipulation and stock market crashes. One specially high profile one was 1992 after which SEBI got it's powers. While what JS did would likely be allowed (borderline) in many other markets, it would be looked at highly suspiciously in India. The underlying narrative is clear, where Indian retail traders are green and need more protection to invest their wealth rather than simply earn interest (India's saving interest is 3.5% and a fixed deposit pays at 7.5%). SEBI also banned shortselling in India for a similar reasons of protecting retail investors. Even institutional investors who can short are not allowed naked shorts or closing their positions in short period (within a day). SEBI values market stability. Overall, Indian traders are inexperienced and not as aware when it comes to options, so expect a regulator to be extra strict here. Free market is a good argument, but that has never been an explicit prerogative for the regulator. When SEBI cautioned against options, they cited speculative bets and disadvantage against institutional investors.[1] [1]: https://blog.liquide.life/sebi-new-rules-options-trading-impact/ https://blog.liquide.life/sebi-new-rules-options-trading-imp...
- thedailymail 1y ago>While these actions were not a breach of any regulation, SEBI said that the “intensity and sheer scale” of their intervention, and the rapid reversal of their trades “without any plausible economic rationale, other than the concurrent activity in and impact on their positions in the BANKNIFTY index options markets,” was manipulative. I don't get the basis for regulatory action if they weren't in "breach of any regulation." Not a fan of financial skullduggery, but it does seem important for government agencies to play by explicit, non-arbitrary rules. (Or maybe this article just got it wrong?)
- markasoftware 1y ago"market manipulation" in general is hard to define. The working definition in the US is something along the lines of "placing orders in the hopes that the price of the security will change in response to those orders existing, with no intention of actually executing the orders". There may be some specific regulations about specific types of market manipulation that are more clearly defined, but oftentimes not. There's lots of grey area, because the definition of market manipulation makes it seem like any order that's canceled instead of executed might be market manipulation. But in fact a majority of orders do get canceled before they trade! So the real difference between market manipulation and a canceled order is just intention, so regulators have to make judgment calls sometimes.
- pgwhalen 1y ago> "market manipulation" in general is hard to define. The working definition in the US is something along the lines of "placing orders in the hopes that the price of the security will change in response to those orders existing, with no intention of actually executing the orders". No, what you defined is "spoofing" - a much narrowed subcategory of market manipulation (which itself is gray, as you note). Market manipulation is broader and basically amounts to intentionally trying to affect the price of the security - even grayer.
- Tadpole9181 1y agoHonestly, there's a good case to be made that it doesn't matter. A government has every right to say "don't manipulate our market and try to fuck our economy" and not need to specify every tiny little loophole, especially to foreign companies. The fact that they must be reactive means they are always behind, and guarantees their country will be screwed and untold damage done before the problem can be addressed. There is absolutely zero illusion that Jane Street is acting in good faith. They know what they're doing is wrong. After all the manipulation, all the crashes, all the exploitation - maybe it is appropriate to just say "I don't care if we wrote it down, we've had enough of this shit".
- Zacharias030 1y agoWhat is „market manipulation“ actually vs non-manipulative buying and selling to make a profit?
- Fade_Dance 1y agoTake the example of spoofing. A trader puts in a 10mm order on the bid in futures, and then pulls it once price gets near him. He then develops an automated trading strategy that capitalizes on the volatility spike in the options market when this bid hits the tape. This example has two common characteristics of market manipulation - using size to push markets in a direction for personal benefit, and putting the bid in with sole intent to push the market, as in there was never any desire to see the order actually get filled. If Jane Street was selling options that were only profitable within the context of a strategy that involved pushing massive size into the market near market close and forcing price down, that is likely categorized as manipulation. On the other hand, if they were moving inventory and in the process moved price, and they tweak their trading strategies to further profit from this, that's a more arguable position.
- ysofunny 1y ago> What is „market manipulation“ actually vs non-manipulative buying and selling to make a profit? directly proportional to the distance from the courts/judges/regulators
- markasoftware 1y agomarket manipulation is when you place/cancel an order with the intention that the market will react to you in a specific way, with no intention of that order actually executing.
- yunwal 1y agoThat’s called spoofing and is a very small subset of market manipulation (which is when you manipulate the market).
- neximo64 1y agoJane St HQ knew what it was presumably because of the action against Millenium. I would not have imagined Jane St doing something so ill
- vaenaes 1y ago[dead]
- randall 1y agoi knew anyone who loves ocaml that much couldn’t be trusted.
- kragen 1y agoThe article said: > While these actions were not a breach of any regulation, I guess this is why you shouldn't do business in India: you can get retroactively punished for breaking rules the regulators wish they had made.
- deleted 1y ago[deleted]
- MichaelNolan 1y agoAnyone have any recommendations for books/papers/articles (math heavy is fine) that give a good steel man argument for why options and derivatives are beneficial? I can wrap my head around why/how options for physical commodities give price stability for sellers and buyers. But at first glance I struggle to see how derivatives are beneficial in the equity markets. The argument is that derivatives increase market efficiency (more accurate pricing) over what just a simple buy/sell market would give you right? But how valuable is this increased efficiency? Obviously is super valuable to the people who work in finance, but how valuable is it outside of that context?
- msgodel 1y agoPuts let you hedge long positions, calls let you hedge short positions. Without that you'd have to liquidate much sooner so there would be more volatility. More abstractly derivatives let traders in one asset pay premia to offload risk to other traders who are more able to absorb it. This way everyone has what they want and the market functions more efficiently. It's very similar to insurance (and you can actually model insurance like a portfolio of long/short put+call options with a probabilistic (event dependent) multiplier.)
- PartiallyTyped 1y agoThey allow for more flexible risk management (ie hedging), especially when dealing with margins or not very liquid tickers because they give you exposure to 100 units (%δ * 100) without requiring you to buy or sell them. If you own stock, you can sell calls against it — especially if premium is high to hedge against drops. If you are short stock, you can buy calls to hedge against short term movement. I personally don’t think they improve price discovery because market microstructure through options and mm exposure affect pricing.
- deleted 1y ago[deleted]
- throwaway2037 1y agoAs a start, separate "derivatives" (a huge category of products) into two simpler categories: listed options and futures. For many underlyings, like interest rates or commodities, it is very difficult to trade the underlying directly, so you use derivs to trade them indirectly. Related: My biggest concern: There should be more gatekeeping around allowing retail traders access to derivs markets due to the implied leverage in the contracts. That said I don't know a good way to gatekeep. How about an exam?
- throwaway2037 1y agoThe blog from Financial Times has a much better write-up, including a link to the official 100+ page legal order from SEBI: "The details of Jane Street’s alleged ‘sinister scheme’ in India": https://www.ft.com/content/41c4789a-afa6-462c-a6ea-9704c2ba78a7 https://www.ft.com/content/41c4789a-afa6-462c-a6ea-9704c2ba7...
- pgwhalen 1y agoI do not have access to the FT, can you link directly to the document from SEBI?
- leoh 1y agoSEBI doc: https://d1e00ek4ebabms.cloudfront.net/production/uploaded-files/1751584518593-219afcc4-a953-4940-b810-934df0c131a9.pdf https://d1e00ek4ebabms.cloudfront.net/production/uploaded-fi... Non-paywalled FT article: https://archive.is/2025.07.06-105811/https://www.ft.com/content/41c4789a-afa6-462c-a6ea-9704c2ba78a7 https://archive.is/2025.07.06-105811/https://www.ft.com/cont...
- throwaway2037 1y agoFT/A is free to sign-up.
- bob1029 1y ago> SEBI said that the “intensity and sheer scale” of their intervention, and the rapid reversal of their trades “without any plausible economic rationale, other than the concurrent activity in and impact on their positions in the BANKNIFTY index options markets,” was manipulative. > "without any plausible economic rationale..." I had a bit of a laugh at this. I thought the rationale was to fuck the counterparties as hard as possible? It would seem like Jane Street being allowed to operate in this market is like bringing an anti-material rifle to a pillow fight.
- ivell 1y ago> I had a bit of a laugh at this. I thought the rationale was to fuck the counterparties as hard as possible? I think the intend was to convey that there was no economic or market situation in India that makes it a necessity. Probably they were not speaking about profit motive.
- ExoticPearTree 1y ago> without any plausible economic rationale Since when making money is not an economic rationale?
- brogdan 1y agoAs these other countries become more wealthy and lucrative in and of themselves due to the sheer industriousness of their citizenry rather than trying to “extract value” through shameless and country-destroying corruptive exploitation, we won’t have much of a reason to look up to places like Jane Street. I don’t particularly care what the interns have wrought because quite frankly the company is a parasitic entity that should not be looked up to as an example, but as something to immediately investigate as a nest of illegal activity that leaves the country worse off. Am I surprised they were cut off? No, not at all. They should be cut off in the West altogether.
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- disposablese 1y agoI’d say that those claiming it’s a simple or classic strategy have very little idea of how stock exchanges operate in second and third-world countries. Getting permission to trade as a foreign institutional investor requires a significant amount of legal work and, umm, bureaucratic investment. Almost all stock exchanges out there use off-the-shelf trade surveillance software, which means the exchange will flag this, and so will the SEC-equivalents, on every trade they make. There’s also a proactive element to this in the form of writing reports and asking for explanations regarding the trades. There’s no way these trades happen without someone noticing. The thing is, Jane Street still consists of some of the smartest people in the room. Getting into markets like this and making large-volume trades is no easy feat. We often equate algorithmic prowess with investment intelligence, but in reality, navigating the legal and regulatory requirements is the only edge you have in trading these days. It’s very hard to figure this out as an international firm. Jane Street did it, and they deserve kudos for it. Trust me, if it were an Indian firm making the same moves, you wouldn’t have heard about it. You’ll see Jane Street will pay a fine and come out on top. This is because they plan for these things with the expectation that regulators will make a scene about it.
- bwfan123 1y ago> You’ll see Jane Street will pay a fine and come out on top Maybe, but the stain on their reputation is hard to wash off. They will forever be known as a manipulator. What was a geeky ocaml wielding quant shop is now viewed as plain-old manipulating crooks with a nerdy veneer.
- disposablese 1y agoThat’s such a STEM thing to say. In finance, this is considered a badge of honor. Your genius physicist hedge fund operator who "broke the game" in the investment world ended up paying $7 billion in a tax settlement [0]. There’s no algorithm—it’s all about regulations and manipulation. In the investment world, fines, "bureaucratic investments," and similar costs are just operating expenses. Guess what? Everything is a line item in a financial report. You hire STEM researchers from Ivy League schools—why? You hire these guys, not just because they’re smart, but because they come with "back home connections" —maybe a multi-millionaire businessman for a father or a politician for an uncle. Nobody makes it to these colleges or financial institutions by merit alone. You need those connections. That’s entirely how finance works. [0] https://www.wsj.com/articles/james-simons-robert-mercer-others-at-renaissance-to-pay-7-billion-to-settle-tax-probe-11630617328 https://www.wsj.com/articles/james-simons-robert-mercer-othe...
- booleandilemma 1y agoI wonder what kind of shady stuff they're doing in other markets.
- nobodywillobsrv 1y agoAs someone in the industry, I have many times asked people how regulators actually track margin / levered exposure and it seems like they basically don't. Any situation where you can make bets on the market that pay off larger than the cost of the market it will lead to manipulation. This is no different than paying off the referee or the star players etc ... The only thing keeping this from happening is the threat of the law really or any adversarial change in incentives. But once a player or collective of players gets big enough, it seems likely this is happening even if it is not coordinated centrally. It would be interesting if more people started to get interested in this problem. I have seen defi stuff that literally bakes in the cost of moving price into the smart contract "market" which is interesting too but at the time of reading (a few years ago) I didn't see direct discussion of the boundaries of manipulation incentives in that domain. Would be interested to hear if anyone is deep in that rabbit hole recently.
- zombot 1y agoNice to see that not all regulators have become toothless jokes like the SEC.
- achow 1y agoUnderstanding Jane Street https://archive.is/czGds https://archive.is/czGds
- mdnahas 1y agoI was a quantitative trader for an options trading firm in the early 2010s. We were a very technical firms and hedges options trades within minutes. So, a trade with us would shift the stock price quickly. Even with that, we got scammed by traders doing this kind of thing on single stocks. My boss said that he complained to the broker and SEC, but nothing happened. We wrote code to limit our losses from this kind of scam. We were probably able to find it because we did hedge quickly. Hedging costs money (trading fees, 1/2 spread) so some firms did it less often. We heard that Bear-Sterns only did it 1 time per day (around 4pm when spreads were small and over-night movement risk was nigh). They wouldn’t have caught this scam.
- magwa101 1y ago[dead]
- abhaynayar 1y ago> 48.4 billion Indian rupees I wonder who would be be able to grok this phrasing. Either use crores, lacs, etc., or don't mention INR at all, and stick to USD.