After taking action against us-based propriety trading jane street manipulative trading strategies, market regulator sebi has now turned its focus to ather foreign high-trading. Operating in India. The regulator is closely examining their trading patterns in the domestic stock markets to determine whater similar quest strategies were used, according to souls.
This move signals the regulator’s intent to tightening oversight of complex algorithm-driving trading, especially by global players who do account for a significant chunk of the volume of the volumes in India. The regulator has asked nse and bse to analyse trades of these foreign hft and quant first, a source said.
“Sebi is looking into the transaction of other live foreign high-frequency trading (HFT) Companies and Quantitative Trading Firms to ascertain if they have a sighting in a sight in a sieger. Whaer and what action will be taken, “Said the source.
Emails sent to the sebi, nse and bse did not elicit any response.
On July 3, Jane Street Group was Barred by the Securities and Exchange Board of India (SEBI), for allegedly indulging in trading patterns which raised serious concerns over markets integrity, prarticularly army. Derivatives.
Some of the big algo trading firms operating in the Domestic Market Include Millennium Management, US-Based Citadel Securities, Alphagrep Securities and Tower Research Capital.
Last week, sebi chairman tuhin kanta pandey said that jane street case was a surveillance issue and the markets regulator was keeping a track of it.
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Market Participants, However, Believe That The Sebi would not like it would like not like to scare away foreign hft and quant realms, who plays an important role in the market.
“They will have to act in a ballan manner, as any stern action will mean volumes will drink up. Foreign players, “Said a trader.
Sebi Examined the Agregate Profit/Loss Made by the jane street January 1, 2023 to March 31, 2025. Comprising 12 Stocks Of India’s Major Bank
JS Group Deployed Two Unauthorised Proprietary Trading Strategies – Intarade Index Manipulation and Extended Marking The Close, The Regulator Said in the Interer. The group allegly made a profit of Rs 36,502.12 Crore during the Period of Investigation. The regulator has ordered the impounding of Rs 4,843.57 crore of unlawful gains made by the group through manipulative trading.
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Volume in F & O Segment May Dip
One of the fallouts of Barring Jane Street Group from the Domestic Securities Market will be a drop in F&O volumes, Market Participants Said.
“Every few have an immediate impact and so the volume will get impacted,” said a broker.
The space left by Jane Street will be filled up by some other player. Traders say that it is different to say the decline in volume will be fullly recoured or not, the impact on trading volume will gradually become
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