Latest news with #financialregulator
Bloomberg
15-07-2025
- Business
- Bloomberg
Swiss Banking Watchdog Who Warned Credit Suisse Is Stepping Down
Thomas Hirschi, a crucial behind-the-scenes actor during the Credit Suisse crisis, is leaving the Swiss financial regulator Finma to pursue a new career. Hirschi, who was born in 1975, has led the watchdog's banks division since 2022 and the supervision of asset managers before that. He will depart on Aug. 31, Finma said in a statement on Tuesday.
Zawya
08-07-2025
- Business
- Zawya
Jane Street to challenge India ban, says it engaged in basic arbitrage
BENGALURU: Jane Street has told staff it will contest a ban by India's financial regulator which has accused the U.S. high-frequency trading giant of market manipulation, adding that its practices in question were "basic index arbitrage trading". Jane Street said it was "beyond disappointed" by what it called "extremely inflammatory" accusations from the Securities and Exchange Board of India (SEBI) and is working on a formal response, according to an internal email sent to employees over the weekend that was seen by Reuters. The email did not elaborate on the potential action that Jane Street might take. SEBI on Friday barred the firm from buying and selling securities in the Indian market and seized $567 million of its funds. "The order clearly lays out SEBI's prima facie case and addresses all relevant areas and questions," SEBI said in an official comment to Reuters. At this stage, we have nothing to add to what is already contained, explained, and reasoned in that order, SEBI added. SEBI in its order had alleged that Jane Street bought large quantities of constituents in India's Bank Nifty index in the cash and futures markets to artificially support the index in morning trade, while simultaneously building large short positions in index options which were exercised or allowed to expire later in the day. The regulator, which tracked Jane Street's trading patterns for more than two years, has also widened its investigation to include other indexes and exchanges, a source has said. Over the past three years, India's derivatives market has had explosive growth as retail investors swarmed in and is now the world's largest. But that has also led to losses for many ordinary investors, which has become a concern for regulators. In its email, Jane Street said arbitrage trades were "a core and commonplace mechanism of financial markets that keeps the prices of related instruments in line." SEBI's order that this activity is "prima facie manipulative" disregards the role of liquidity providers and arbitrageurs in markets, Jane Street added. SEBI did not respond to Reuters' requests for comment. The proprietary trading firm also took issue with SEBI's claims that it had failed to respond adequately to the regulator's concerns, saying the firm's executives had met with regulators and exchange officials multiple times. "Once again, we left this process feeling that we had reached an understanding of the concerns and reflected them in modifications to our trading behaviour." "Since February, we have made ongoing efforts to communicate with SEBI and have been consistently rebuffed," the email said. India accounted for roughly 60% of global equity derivative trading volume in May, according to the Futures Industry Association. Data out on Monday showed that equity derivative losses for India's retail traders widened by 41% to 1.06 trillion Indian rupees ($12.4 billion) in the financial year that ended in March. SEBI Chairman Tuhin Kanta Pandey also said on Monday that the regulator was enhancing its surveillance to scrutinise manipulation in derivatives trading, but added that there may not be many more cases like Jane Street. Other overseas proprietary trading firms that are active in India include Citadel Securities, IMC Trading, Millennium and Optiver.
Reuters
07-07-2025
- Business
- Reuters
Jane Street to challenge market manipulation charges by Indian regulator, email shows
July 7 (Reuters) - Jane Street plans to contest a finding by India's financial regulator that the U.S. trading firm engaged to manipulate the country's markets, according to the company's internal email seen by Reuters. Jane Street's email sent to its employees said it was "beyond disappointed" by the regulator's "extremely inflammatory" accusations and was working on a formal response. On Friday, the Securities and Exchange Board of India barred the firm from buying and selling securities in the Indian market and also seized $567 million of its funds. SEBI has widened an investigation into alleged market manipulation by Jane Street to include other indexes and exchanges, a source told Reuters last week. "It's deeply upsetting to see the firm mischaracterised this way," the Jane Street email read. "Once again, we left this process feeling that we had reached an understanding of the concerns and reflected them in modifications to our trading behaviour." "Since February, we have made ongoing efforts to communicate with SEBI and have been consistently rebuffed." The regulator alleged that Jane Street bought large quantities of constituents in India's Bank Nifty (.NSEBANK), opens new tab index in the cash and futures markets to artificially support the index in morning trade, while simultaneously building large short positions in index options. The regulator's investigation tracked Jane Street's trading patterns over more than two years. SEBI did not immediately respond to Reuters requests for comment outside regular hours. India's markets regulator is enhancing its surveillance to scrutinize manipulation in derivatives trading, its chairman said on Monday. India is the world's largest derivatives market, accounting for nearly 60% of global equity derivative trading volumes of 7.3 billion trades in April, the Futures Industry Association says. Financial Times was the first to report the news about Jane Street's plan to contest the finding.
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.
Yahoo
29-06-2025
- Business
- Yahoo
More people could get help to navigate their financial lives, says regulator
'Once-in-a-generation' proposals to help more people navigate tricky financial decisions and boost confidence when getting to grips with investments and pensions have been set out by the City regulator. The proposals would enable firms to offer a new type of help called 'targeted support' and make suggestions to groups of consumers with common characteristics. The Financial Conduct Authority (FCA) is aiming to reduce the 'advice gap' – so that people have timely access to the help they need, at a cost they can afford, to make informed decisions about their financial lives. The FCA said people who may be currently drawing down on their pension unsustainably, not saving enough for retirement or who have excess cash sitting in a current account, could potentially be helped. Sarah Pritchard, deputy chief executive of the FCA, said: 'We want to help consumers navigate their financial lives and plan for the long term. Some of the most difficult financial decisions we face are how to save, invest and prepare for a comfortable retirement. 'These once-in-a-generation reforms will help people navigate their financial lives and give them greater confidence to invest. This is a win-win for consumers and firms alike.' The reforms should set the framework for the next 20 to 30 years, the regulator said. The FCA said that as well as targeted support, it wants to see a thriving and trusted market for full financial advice, simplified advice and guidance. It said the advice gap is 'stark'. Just 9% of adults received financial advice about their pensions or investments in the previous 12 months, according to the FCA's latest Financial Lives survey 2024. Of those who did not receive financial advice, but hold £10,000 or more in cash savings, 24% said they do not invest because they do not know enough about it, 12% because they feel overwhelmed by the number of options available, and 8% said they would need more support before they invest. The FCA said there are around seven million adults in the UK with £10,000 or more in cash savings who may be missing out on the benefits of investing throughout their lives. Its consultation is open for eight weeks. The regulator said it is also working with the Government to help resolve issues that might prevent firms communicating with consumers. Dan Olley, chief executive at Hargreaves Lansdown, said the changes 'will be truly transformational in kick-starting a thriving retail investment culture in the UK over the coming years'. He continued: 'For the first time, we will be able to provide targeted support that is much more relevant for each of our clients. 'We will be able to tailor conversations and the digital experience to where they are in their investing journey, helping them see the potential of certain choices, which could have large positive impacts on their financial outcomes over the long term.' Tom Selby, director of public policy at AJ Bell, said: 'Ensuring people can access the help and support they need, either through regulated advice or guidance, is critical to building financial resilience in the UK. The existing regulatory framework makes it difficult for firms to offer anything beyond relatively basic information to non-advised customers without risking straying over the boundary from guidance to advice. 'This means millions of people who don't take regulated advice are essentially left to make often complex retirement decisions on an island, without receiving the help they require.' Claire Exley, head of financial advice and guidance at JP Morgan-owned wealth manager, Nutmeg said: 'Targeted support is a much needed and welcomed first step in closing the advice gap. 'We know clients are looking for guidance that is relevant to them, their situation at the time it's right for them. 'People like you' scenarios will hopefully help consumers to build confidence in their own decision making – we're aware that often people are looking for reassurance that they've arrived at the 'right' decision – rather than being told what the decision should be.' James Heal, director of public policy at St James's Place, said: 'We are moving closer to a new form of support that will help consumers make better investment decisions.' Yvonne Braun, director of long-term savings policy at the Association of British Insurers (ABI) said: 'We know facing complex financial decisions can feel overwhelming, especially in retirement, which is why we've long championed targeted support. The FCA's decision to press ahead with this crucial proposal is very welcome and should be a relief to millions of savers. 'We expect targeted support to be free and widely available. To ensure its success, it should be backed by a clear process for fair compensation if things go wrong. Giving firms the freedom and flexibility to roll out targeted support across a range of products and scenarios will make sure everyone can benefit. We also welcome the drive for simplified advice. While no single solution will entirely close the advice gap, this package is a major leap forward.' Chancellor Rachel Reeves said: 'Too many people are missing out on the support they need build a more secure financial future for themselves and their families. 'Today's reforms will make a real difference to help working people make better long-term financial decisions, ultimately putting more money in their pockets as part of our plan for change.' 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