JANE STREET TO CONTEST SEBI

Jane Street has told staff it will contest a ban by India’s financial regulator which has accused US high-frequency trading giant of market manipulation, adding that its practices in question were “basic index arbitrage trading”.

- REUTERS

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.

SEBI Friday barred the firm from buying and selling securities in the Indian market and seized $567 million of its funds.

It 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.