Latest news with #equityderivatives
Bloomberg
12-07-2025
- Business
- Bloomberg
Jane Street India Ban Threatens 900% Rally for Asia's Oldest Stock Exchange
By Asia's oldest stock exchange was preparing to celebrate its 150th anniversary when a storm of bad news upended the festivities. On Monday, a report revealed deepening losses in equity derivatives among India's retail traders, fueling concerns that the Securities and Exchange Board of India may impose tighter curbs. Just days earlier, the regulator barred Jane Street Group from dealing in local markets, alleging the trading giant manipulated prices to make billions of dollars at the expense of small investors — charges the US firm has denied.
Bloomberg
07-07-2025
- Business
- Bloomberg
Indian Retail Traders Lose $12 Billion Trading Equity Options
Individuals in India lost over 1 trillion rupees ($12.2 billion) during the year ended March, trading equity derivatives in the world's top destination for such products, according to a study by the country's securities regulator. Nine out of 10 mom-and-pop investors suffered losses, the study published on Monday by the Securities and Exchange Board of India found. Retail investors had lost 748.12 billion rupees in the financial year ended March 2024, the study showed.
Bloomberg
07-07-2025
- Business
- Bloomberg
Why Jane Street Was a Target in India's Option Trading Crackdown
India has gone from being a small player in the highly speculative equity derivatives market to the world's largest, all within just five years. Daily turnover in the market now sits at around $3 trillion. Demand for so-called equity options in particular has exploded as large numbers of relatively inexperienced retail investors came in search of quick returns. There are concerns that some large market participants have been using sophisticated technology to manipulate the system to their advantage. A study by the Securities and Exchange Board of India found that retail investors lost more than $20 billion on option trades over three years.
Bloomberg
06-07-2025
- Business
- Bloomberg
Jane Street's Cash Machine Comes to an Abrupt Halt in India
Home to at least a half dozen high-speed trading firms, the blue-glass building with a rooftop helipad and a bronze bull sculpture in its plaza has been the center of a trading boom that made India the world's biggest equity derivatives market by volume. Foreign funds and proprietary traders using algorithms made $7 billion in the 12 months to March 2024 alone. That bonanza may be coming to an end. On Friday, nine months after the nation's securities regulator tightened restrictions on options trading to protect retail investors, it accused Jane Street Group — one of the market's biggest players — of manipulating prices to generate hundreds of millions of dollars in ill-gotten profits.
Bloomberg
04-07-2025
- Business
- Bloomberg
Why Regulators Are Cracking Down on India's Giant Options Market
India has gone from being a small player in the highly speculative equity derivatives market to the world's largest, all within just five years. Daily turnover in the market – which includes options trading – now sits at about $3 trillion. The markets regulator has become increasingly concerned about this segment of the market, particularly because of its sudden popularity among inexperienced retail investors chasing quick returns. It has previously warned that these traders could face big losses when bets go wrong, particularly against larger financial market players.
