{"id":33253,"date":"2025-07-07T17:03:56","date_gmt":"2025-07-07T17:03:56","guid":{"rendered":"https:\/\/financialrush.com\/?p=33253"},"modified":"2025-07-07T17:03:56","modified_gmt":"2025-07-07T17:03:56","slug":"jane-street-to-contest-indian-regulators-manipulation-charges","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=33253","title":{"rendered":"Jane Street to contest Indian regulator\u2019s manipulation charges"},"content":{"rendered":"<p> \n<\/p>\n<div>\n<p>Unlock the Editor\u2019s Digest for free<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\"><span>Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=6cf91467-4dd6-4dd7-97c6-c30a6a1f7afe\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Jane Street plans to contest a finding by India\u2019s financial regulator that the Wall Street trading firm engaged in \u201can intentional, well planned, and sinister scheme\u201d to manipulate the country\u2019s markets.\u00a0<\/p>\n<p>On Friday, the Securities and Exchange Board of India banned the US trading firm from dealing securities in the country, alleging that it had systematically <a href=\"https:\/\/www.ft.com\/content\/41c4789a-afa6-462c-a6ea-9704c2ba78a7\" data-trackable=\"link\">manipulated<\/a> Indian bank stocks to trigger huge payouts on related derivatives. SEBI also ordered Jane Street to return more than $550mn of \u201cillegal gains\u201d.\u00a0<\/p>\n<p>In a memo sent to its roughly 3,000 employees on Sunday, Jane Street\u2019s senior management said that they were \u201cbeyond disappointed\u201d by SEBI\u2019s \u201cextremely inflammatory\u201d accusations and were \u201cworking on a formal response\u201d to rebut them. <\/p>\n<p>\u201cIt\u2019s deeply upsetting to see the firm mischaracterised this way,\u201d said the memo, a copy of which was seen by the Financial Times. \u201cWe take pride in the role we serve in markets around the world, and it\u2019s painful to have our firm\u2019s reputation tarnished by a report based on so many erroneous or unsupported assertions.\u201d<\/p>\n<p>SEBI said last week that Jane Street had 21 days to object to the order and request a hearing.<\/p>\n<p><a href=\"https:\/\/www.ft.com\/stream\/dcbd97a4-215c-43ef-9e26-b9ce3ad4a7c2\" data-trackable=\"link\">Jane Street<\/a> is one of the biggest and most successful of a new generation of \u201cproprietary trading firms\u201d that have emerged over the past two decades and become hugely influential in an array of markets. <\/p>\n<p>The New York-headquartered firm nearly doubled its net trading revenues to $20.5bn last year, outpacing several of Wall Street\u2019s biggest banks. In the first quarter of 2025 Jane Street notched up net trading revenues of $7.2bn, more than Morgan Stanley. <\/p>\n<p>SEBI\u2019s investigation was triggered by revelations from a lawsuit launched by Jane Street last year against Millennium Management and two former traders that had moved to the hedge fund. <\/p>\n<p>Jane Street\u2019s complaint alleged that the traders had stolen a hugely valuable trading strategy, which was later revealed to revolve around Indian options trading. <\/p>\n<p>SEBI\u2019s investigation has so far focused on Jane Street\u2019s trading in shares, futures and options tied to the <a href=\"https:\/\/www.ft.com\/content\/41c4789a-afa6-462c-a6ea-9704c2ba78a7\" data-trackable=\"link\">BANKNIFTY<\/a> index of Indian banking stocks, but regulators indicated over the weekend that they were also looking at other corners of India\u2019s financial markets. <\/p>\n<p>Jane Street\u2019s memo to staff said that the Indian regulator had used \u201ca metric for market impact and trading aggressiveness which seems disconnected from actual market dynamics\u201d. It argued that the details of its trading on January 17, 2024 \u2014 one of the days highlighted in SEBI\u2019s report \u2014 actually showed \u201cbasic arbitrage trading\u201d, a standard strategy in the industry. <\/p>\n<aside aria-labelledby=\"aside-label\" class=\"n-content-recommended--single-story n-content-recommended--inset\" data-component=\"recommended\">\n<p class=\"n-content-recommended__title o3-type-body-highlight\">Recommended<\/p>\n<div class=\"o-teaser o-teaser--article o-teaser--small o-teaser--stacked o-teaser--has-image js-teaser\" data-id=\"bf4fbf13-a22e-4145-9c19-1492cca9167d\">\n<div class=\"o-teaser__image-container js-teaser-image-container\"><a href=\"https:\/\/www.ft.com\/content\/bf4fbf13-a22e-4145-9c19-1492cca9167d\" data-trackable=\"image-link\" data-trackable-context-story-link=\"image-link\" tabindex=\"-1\" aria-hidden=\"true\"><\/p>\n<div class=\"o-teaser__image-placeholder\" style=\"aspect-ratio:2290\/1288\"><\/div>\n<p><\/a><\/div>\n<\/div>\n<\/aside>\n<p>Jane Street\u2019s executives were also incensed by SEBI\u2019s assertion that the firm had ignored concerns voiced by local stock exchanges, which the regulator cited as justification for the sudden and unprecedented ban on the trading firm\u2019s Indian activities.<\/p>\n<p>This allegation \u201cfelt especially far from reality\u201d, Jane Street\u2019s memo said. The trading firm said it had at the time immediately turned off its trading \u201cuntil we could better understand the exchanges\u2019 concerns\u201d, and then modified its strategies to address their \u201cpreferences\u201d.<\/p>\n<p>\u201cOnce again, we left this process feeling that we had reached an understanding of the concerns and reflected them in modifications to our trading behaviour,\u201d the memo said. \u201cSince February, we have made ongoing efforts to communicate with SEBI and have been consistently rebuffed.\u201d <\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/6cf91467-4dd6-4dd7-97c6-c30a6a1f7afe\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this&hellip;\n","protected":false},"author":5,"featured_media":33254,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":["post-33253","post","type-post","status-publish","format-standard","has-post-thumbnail","category-us","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/33253","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=33253"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/33253\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/33254"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33253"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33253"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33253"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}