Jane Street getting charged by Indian Regulator for market manipulation
So Jane street has been suspended from Indian markets and been fined for $500M (and might get more) for manipulating markets.
For people who haven’t read the full story a TLDR is that JS would buy a ton of puts and short a ton of calls while “pre delta hedging “ the underlying futures and cash equities. Indian markets are interesting as the options market is very liquid but the underlying is not and hence JS could take a small loss by moving the underlying to then make a killing from the options.
XTX ceo also made an interesting post explaining what he thinks happened. Curious to hear everyone’s thoughts. I believe this was the same strategy that JS sued MLP over.
Could have been avoided or at least delayed if they hadn't sued... being loud rarely pays off in this industry
Everyone I knew thought that the lawsuit was idiotic when they first sued. JS looked incompetent & basically had no case because they don’t have non-competes, they put a target on themselves (to both SEBI & competitors) by saying they were printing money in India, and it couldn’t have been good for morale.
Oldest trick in the book, there is a ton of that going on in another bit of the market...
Where, in dark pools?
in india dark pools are just curry vats where the frying oil hasnt been changed in a while
Basically any market where the liquidity of the underlying is orders of magnitude lower than the liquidity of the options markets (see Gerko's posts)
This is pretty blatant - wonder if there will be criminal charges? those guys effectively stole a couple billions from people making ~5k/yr ...
american capitalism is stealing trillions from people making 40k a year
so drop in the bucket?
Am I too naive to be surprised that JSC had been suing MLP for this so called "trade secret"
it’s q funny that JS had carved this nice guy reputation with high pay (initially at least), good working culture (wlb wise) , no non competes etc
and then things like this and the news of them supplying arms for a coup come out
Also SBF and other crypto scammers coming from JS
Don’t mess with Izzy
is negative news is because of messing w millennium?
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