Jane Street News: SEBI Crackdown Sends Shockwaves Through Indian Options Market

Market Performance After SEBI's Jane Street Order

The Indian options market has witnessed a noticeable slowdown in trading activity since the SEBI action against Jane Street, a US-based proprietary trading firm. This impact is noticeable during weekly options expiry sessions.

• On the National Stock Exchange (NSE), the premium turnover of index options dropped sharply.
• June 26: ₹80,731 Crore
• July 3: ₹61,511 Crore (same day SEBI order was published)
• July 10: ₹45,884 Crore — a 25% decline from the previous week

This continuous drop signifies a significant shift in market momentum following the regulatory action.

Main News: Jane Street Crackdown by SEBI

The SEBI recently published an enforcement order against Jane Street, citing allegations of unfair trade practices.

Since this announcement:

• Both NSE and BSE have reported steep declines in options premium turnover.
• Liquidity in the options market has thinned, particularly during weekly expiries.

NSE Derivatives Premium Turnover:

That marks a 67% fall in just two weeks.

Company Data Impact & Trading Trends

While Jane Street  is not listed directly in Indian exchanges, its influence as a proprietary trading firm has had ripple effects across market operations.

The data reveals:

• In the first eight sessions of July, total options turnover on NSE was ₹10.4 lakh Crore.
• This represents a drop of over 30% compared to ₹15.22 lakh Crore in the first eight sessions of April.

This consistent decline shows the growing impact of reduced market participation.

BSE Also Feels the Heat

The Bombay Stock Exchange (BSE) has mirrored this downturn in activity.

• On June 24, BSE's options premium turnover was ₹44,010 Crore.
• By July 8, it had dropped to ₹19,683 Crore — a fall of more than 55%.

This dramatic fall suggests a strong market-wide response to SEBI's enforcement action.

Company Details: Who Is Jane Street?

Jane Street is an international quantitative trading firm and prominent liquidity provider, renowned for its proficiency in high-frequency trading (HFT) techniques. Although it doesn't have a directly listed share price on Indian exchanges, the firm's activities play a crucial role in global and Indian financial markets.

With a reputation for aggressive arbitrage and options trading strategies, Jane Street's involvement significantly boosts market liquidity. The SEBI action is likely to make large traders more cautious, thereby reducing overall volumes in the short term.

Summary of the Article

• SEBI's action against Jane Street has led to a significant decline in options trading volumes.
• NSE's weekly options turnover fell from ₹80,731 Crore (June 26) to ₹45,884 Crore (July 10).
• Derivatives premium turnover declined from ₹4.13 lakh Crore to ₹1.38 lakh Crore over two weeks.
• BSE options turnover halved from ₹44,010 Crore to ₹19,683 Crore post-SEBI action.
• Trading activity has dropped for four consecutive months, highlighting broad market caution.