US Quantitative Giant Banned from Indian Market, Manipulation Tactics Exposed

Recently, the Securities and Exchange Board of India issued a temporary regulatory notice prohibiting the entry of the American quantitative trading giant Jane Street into the local market, until further notice, and frozen the company's funds of 48.4 billion rupees. SEBI stated that these funds were "illegitimate gains" obtained by the company for its alleged "egregious market manipulation behavior". This is the strictest measure taken by SEBI against foreign trading companies in recent years. SEBI stated that its investigation found that Jane Street manipulated stock indexes through derivative trading, causing losses to retail investors on the other side of the trades. It is worth noting that due to the strong performance of India's major stock indexes, retail investors have flocked to the market in recent years, further propelling India to become the world's largest derivative market by trading volume. A large number of individual investors participate in derivative trading, with options liquidity even higher than spot trading, which has been an important background for Jane Street's market manipulation.