Latest news with #highfrequencytrading
Zawya
a day ago
- Business
- Zawya
Jane Street deposits $567mln so it can resume India trading
U.S. high-frequency trading giant Jane Street, which has been accused of market manipulation by Indian authorities, has deposited $567 million in an escrow account so that it can resume trading. The Securities and Exchange Board of India (SEBI) barred the firm this month from buying and selling securities in the Indian market and put a freeze on $567 million of its funds. It was only to be allowed to resume trading if an equivalent amount was deposited in an account that gives the regulator rights over the money until its investigation is complete. SEBI said in a statement on Monday that the money had been transferred and it was examining Jane Street's request that restrictions placed on it be lifted. The company has told its staff it plans to contest SEBI's allegations and that the practices in question were "basic index arbitrage trading". "The money has been deposited in good faith. The firm continues to contest the order and will send a formal response rebutting the allegations in coming weeks," said the source with direct knowledge of the matter. It was not immediately clear when Jane Street might resume trading. The firm does not intend to trade in Indian options while the dispute is unresolved, said a separate source. The sources were not authorised to speak to media and declined to be identified. Jane Street did not immediately respond to a Reuters request for comment. SEBI alleges 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 previously said.
Reuters
2 days ago
- Business
- Reuters
Jane Street deposits $567 million so it can resume India trading, sources say
July 14 (Reuters) - Jane Street, which has been accused of market manipulation by Indian authorities, has deposited $567 million in escrow accounts which will allow the U.S. firm to resume trading, two sources with direct knowledge of the matter said on Monday. The Securities and Exchange Board of India (SEBI) this month barred the U.S. high-frequency trading giant from buying and selling securities in the Indian market and put a seize on $567 million of its funds. Jane Street would only be allowed to resume trading if an equivalent amount of funds were deposited in an escrow account. The company has told its staff it plans to contest SEBI's allegations and that the practices in question were "basic index arbitrage trading". "The money has been deposited in good faith. The firm continues to contest the order and will send a formal response rebutting the allegations in coming weeks," said one of the sources. Both sources were not authorised to speak to media and declined to be identified. Jane Street and the Securities and Exchange Board of India did not immediately respond to a Reuters request for comment. SEBI alleges 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 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. Jane Street does not intend to trade in Indian options while the dispute is unresolved, said one of the sources.
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.
Geeky Gadgets
25-06-2025
- Business
- Geeky Gadgets
Inside the Lightning-Fast World of High-Frequency AI Trading Systems
What if the difference between profit and loss in financial markets wasn't measured in seconds, but in nanoseconds? High-frequency AI trading (HFT) systems operate in this razor-thin margin of time, where every microsecond shaved off a process can mean millions of dollars gained—or lost. These systems are feats of engineering, combining ultra-low latency hardware, real-time data pipelines, and algorithmic precision to execute trades faster than the blink of an eye. Yet, behind the scenes, their architecture is a labyrinth of complexity, demanding relentless optimization and innovation. For those curious about the invisible machinery driving modern financial markets, the world of HFT offers a fascinating glimpse into the intersection of technology and economics. In this exploration, ByteMonk uncover the real-time architecture that powers these systems, breaking down the critical components that enable them to process market data, make decisions, and execute trades at unprecedented speeds. From in-memory order books that provide instant snapshots of market activity to FPGA accelerators that push hardware to its limits, each element plays a pivotal role in maintaining the competitive edge of HFT firms. But this isn't just a story of speed; it's also one of precision, risk management, and adaptability in an ever-evolving landscape. By the end, you'll gain a deeper appreciation for the intricate design and relentless optimization that make high-frequency AI trading possible—an architecture where milliseconds are a luxury, and every decision is a race against time. High-Frequency Trading Overview What Drives High-Frequency Trading? At its core, high-frequency AI trading revolves around the use of sophisticated algorithms and machines to execute trades at lightning-fast speeds. The primary objective is to exploit minute price discrepancies across markets or instruments, generating profits through high trade volumes. In this environment, speed is paramount—delays measured in microseconds can determine the difference between profit and loss. To achieve this level of performance, HFT systems prioritize: Minimizing latency to ensure trades are executed faster than competitors. Real-time data handling to process and analyze market information instantly. Precision in execution to capitalize on fleeting opportunities with minimal error. Every aspect of an HFT system's design is carefully optimized to meet these demands, making sure it operates with unparalleled efficiency. How Real-Time Market Data Powers HFT The backbone of any HFT system lies in its ability to ingest and process market data in real time. Exchanges broadcast market data through ultra-low latency networks, which HFT systems capture using specialized hardware such as network interface cards (NICs) equipped with kernel bypass technology. This bypass eliminates delays caused by traditional operating system processes, allowing data to flow directly into the system. Once captured, market data feed handlers decode and transform raw data into actionable formats. This transformation enables algorithms to perform rapid analysis and make split-second AI trading decisions. The ability to process data with such speed and accuracy is what allows HFT systems to stay ahead in highly competitive markets. Trading System Real-Time Architecture Explored Watch this video on YouTube. Explore further guides and articles from our vast library that you may find relevant to your interests in AI automation. The Role of In-Memory Order Books An in-memory order book is a pivotal component of HFT systems, providing a live, up-to-the-moment view of market activity. Unlike traditional storage methods, which rely on disk-based systems, in-memory order books store data directly in memory. This eliminates the latency associated with disk access, making sure that trading decisions are based on the most current market conditions. In addition to speed, in-memory order books offer fault tolerance, allowing the system to recover quickly in the event of failures. These order books serve as the foundation for trading algorithms, allowing them to evaluate market conditions and execute strategies with minimal delay. By maintaining a real-time snapshot of the market, HFT systems can respond to changes with unparalleled precision. Event-Driven Pipelines: The Engine of Speed HFT systems rely on event-driven architectures to process data and execute trades at exceptional speeds. These pipelines are optimized for high throughput and low latency, often employing lock-free mechanisms to avoid bottlenecks. Nanosecond-precision timestamps play a critical role in sequencing and synchronizing events. By making sure that decisions are based on the most accurate and timely information, event-driven pipelines enable HFT systems to operate with unmatched efficiency. This architecture is the driving force behind the speed and reliability of high-frequency trading. FPGA Acceleration: Hardware for Speed Field Programmable Gate Arrays (FPGAs) are a cornerstone of HFT systems, providing hardware-level acceleration for critical tasks. These components are customized to perform specific operations, such as arbitrage calculations or market-making, at speeds far beyond what traditional software can achieve. By embedding logic directly into hardware, FPGAs enable ultra-fast decision-making and execution. This hardware-level optimization gives HFT firms a significant competitive advantage, allowing them to process data and execute trades faster than their competitors. The integration of FPGAs into HFT systems exemplifies the importance of specialized hardware in achieving peak performance. Algorithmic Strategy Engines The strategy engines within HFT systems are responsible for analyzing market conditions and executing trades. These engines are tailored to the specific trading strategies employed by the firm, which may include: Statistical arbitrage : Analyzing historical price relationships to identify profitable opportunities. : Analyzing historical price relationships to identify profitable opportunities. Machine learning models: Adapting to evolving market conditions for dynamic decision-making. Regardless of the approach, these engines are carefully optimized for both speed and accuracy. By using advanced algorithms, HFT systems can respond to market changes in real time, making sure they remain competitive in fast-moving environments. Smart Order Routing and Risk Management Smart order routing is a critical feature of HFT systems, making sure that trades are executed at the best possible prices across multiple exchanges. These routers continuously evaluate market conditions, directing orders to the most favorable venues. Simultaneously, pre-trade risk management systems perform essential checks to prevent financial errors and ensure compliance with regulatory requirements. By integrating these components, HFT systems safeguard the integrity and stability of their operations, minimizing risks while maximizing profitability. Order Management and Continuous Monitoring Centralized monitoring systems provide real-time visibility into the trading process, tracking the status of orders, execution performance, and overall system health. These tools enable operators to detect and resolve issues such as latency spikes or hardware failures quickly. Continuous monitoring ensures that the system operates at peak efficiency, minimizing downtime and maximizing profitability. By maintaining a constant watch over system performance, HFT firms can address potential problems before they escalate, making sure uninterrupted AI trading operations. Relentless Optimization for Precision HFT AI trading systems are in a perpetual state of refinement, with engineers focusing on reducing latency and enhancing performance. This process involves the seamless integration of hardware and software, including: FPGA-based accelerators for hardware-level speed enhancements. for hardware-level speed enhancements. Specialized network hardware to reduce transmission delays. By co-designing these components, HFT systems achieve the precision and speed required to thrive in the fast-paced world of financial markets. This relentless pursuit of optimization ensures that HFT systems remain at the cutting edge of trading technology. Media Credit: ByteMonk Filed Under: AI, Top News Latest Geeky Gadgets Deals Disclosure: Some of our articles include affiliate links. If you buy something through one of these links, Geeky Gadgets may earn an affiliate commission. Learn about our Disclosure Policy.
