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    518 points bwfan123 | 13 comments | | HN request time: 0.486s | source | bottom
    1. walterbell ◴[] No.44483691[source]
    https://web.archive.org/web/20250519053752/https://www.bnnbl...

    > Jane Street sued Millennium, Schadewald and Spottiswood in April [2024], claiming the two traders had taken an “immensely valuable” trading strategy with them. It later emerged at a court hearing that the strategy involved India options and had generated $1 billion in 2023 profits for Jane Street.

    replies(4): >>44483859 #>>44484138 #>>44484711 #>>44489577 #
    2. brcmthrowaway ◴[] No.44483859[source]
    This is interesting. Anyone know what they offered these traders? Can't be more than Zucks 100mn offer!
    replies(2): >>44485323 #>>44485770 #
    3. lordnacho ◴[] No.44484138[source]
    I'm amazed they managed to move firms. Suppose you know how the strategy works, and it's like what SEBI says.

    1) How do you approach mlp? They don't just give you an account, they have risk officers, compliance officers, and general strategy due diligence.

    2) If you manage to get past it, what then? Say mlp just asks some superficial questions and sees the dollar signs. Are you going to do the same thing? You have to think the compliance people will complain, surely?

    3) So maybe the strategy they actually approached with was a parasitical strategy? If you know which stocks will be bought and sold by JS, maybe you do jump in first? Especially as you'll know particulars like when it happens, which stocks are selected, and how to spot them.

    replies(2): >>44485859 #>>44486683 #
    4. CPLX ◴[] No.44484711[source]
    As always in finance the secret ingredient is crime.

    I wonder to what degree the lawsuit is what got this on the radar of the Indian authorities. Maybe they should have listened to Stringer Bell.

    replies(1): >>44484838 #
    5. ldjkfkdsjnv ◴[] No.44484838[source]
    I know someone that made 10 million a year for a long time on wall street. They said, generally you can assume anyone making a large amount of money is a criminal. Any large deviations from the typical returns you would see in an asset class was suspicious
    6. jxf ◴[] No.44485323[source]
    Where did Meta offer them $100M?
    7. esseph ◴[] No.44485770[source]
    He didn't actually offer anyone 100m, that was a bullshit number Altman made up.
    8. pgwhalen ◴[] No.44485859[source]
    A more straightforward explanation could be that the strategy is not market manipulation by conventional SEC thinking, and that this SEBI enforcement action is an unwelcome surprise rather than “damn they got us.”
    replies(1): >>44486144 #
    9. SpicyLemonZest ◴[] No.44486144{3}[source]
    The article, and the order it's based on, indicate that Jane Street continued this trade for months after being told in February of this year that they need to stop.
    replies(1): >>44486429 #
    10. bmitc ◴[] No.44486429{4}[source]
    That's how corporations behave when they have lawyers.
    11. mhh__ ◴[] No.44486683[source]
    I could vaguely believe that you could hide some of the details by virtue of coming from a prop shop and saying it's some new angle for mlp.

    Maybe they do have teams running prop style strategies but I would guess that if you snapped the book at a given second you'd probably miss the alleged secret sauce.

    Crazy eh

    Need to ask my mlp friends lol

    12. Ntrails ◴[] No.44489577[source]
    I remain bemused that they described this as an "unintuitive strategy which required significant back testing etc".

    As I read it they were just smashing underlyings to move the close price and profit from larger derivative positions... which is the most intuitive strategy I ever heard. There must be something more here right?

    replies(1): >>44490385 #
    13. __s ◴[] No.44490385[source]
    One thing to factor in is someone seeing you make this play & starting to buy up & sell high in morning shortly before you come in. So you need to factor in price points where you go through with this & where you don't

    Also need to keep an eye on where you predict price is going naturally, don't want to be left fighting price uphill on wrong day