The Jane Street Saga: What It Means To You

The 105-page interim order in the matter of index manipulation of Jane Street Group, a global proprietary trading firm, rocked the stock market last week.

- RAJAS KELKAR

The Securities and Exchange Board of India, the stock market regulator, barred a group of four entities from trading in Indian markets and ordered the impounding of their profits. Sebi has accused the group of manipulating the prices of securities for profit. Derivatives, such as futures and options, derive their value from underlying securities, like stock indices or individual shares. Traders around the world buy in markets where prices are low and sell when prices are high. They do that within the cash or derivative market or across markets.