INSUBCONTINENT EXCLUSIVE:
clampdown on Jane Street, after its early detection of suspicious expiry-day trades and forensic data submissions laid the groundwork for
the market manipulation case against the U.S.-based quant trading giant.NSE was the first to raise the alarm over suspicious expiry-day
following global media reports linking the firm to a legal dispute involving its proprietary strategies.By November 13, 2024, NSE submitted
a detailed analysis highlighting abnormal trading on expiry days in both Nifty and Bank Nifty contracts
executed on key expiry dates, including January 17, 2024; July 10, 2024; and May 15, 2025
These inputs included multiple tables and trade breakdowns that the regulator cited in building its case against Jane Street.Crucially, the
Sebi order makes no mention of similar alerts or data contributions from other Indian exchanges
This places NSE as the sole market infrastructure institution to have proactively flagged and escalated concerns, a role the regulator
action has stirred debate on the vulnerability of Indian derivatives markets to algorithmic manipulation, the episode has also brought to
But Sebi chose to go further, launching an in-depth forensic probe that led to the interim order barring Jane Street and four affiliated
reinforcing investor confidence
importance of a responsive and data-driven market infrastructure in an environment where 93% of retail options traders reportedly lose money
institutional vigilance required to navigate the complexities of high-speed, cross-border market structures.Also read | Jane Street
clampdown raises big questions for Sebi: Can the regulator stop another derivatives fraud?(Disclaimer: Recommendations, suggestions, views
and opinions given by the experts are their own
These do not represent the views of the Economic Times)
