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518 points bwfan123 | 4 comments | | HN request time: 0.726s | source
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cs702 ◴[] No.44483909[source]
According to Indian regulators, every trading day Jane Street would:

1) buy large volumes of stocks and/or stock futures that are part of an index tracking India’s banking sector, early in the day,

2) subsequently place large options trades, betting that the index would decline or volatility would spike later in the day, and

3) later in the day, cash out of the large long positions, dragging the index lower, making far more money on the options trades than on the long positions.

Jane Street can and likely will claim the firm was only arbitraging away pricing inefficiencies, nothing more, nothing less. It was just business as usual, etc., etc.

However, given the scale of the operation, Jane Street's actions sure look like textbook market manipulation. Calling it like I see it.

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stefan_ ◴[] No.44483959[source]
Hardly a sophisticated high tech HFT operation. Totally illegal of course, except in places that maybe don't have the regulatory rigeur.
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cs702 ◴[] No.44483990[source]
Hardly a sophisticated strategy, indeed, but Jane Street was earning like $1B/year of profit on it, according to https://news.ycombinator.com/item?id=44483691
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1. whatever1 ◴[] No.44484070[source]
Someone has to pay for the OCAML maintenance
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2. ldjkfkdsjnv ◴[] No.44484853[source]
all that OCAML we only hire the smartest is often a veil for what is really a simpler operation that is borderline illegal. probably alot of employees dont even really understand the systems they work on
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3. senderista ◴[] No.44486000[source]
We just send the rockets up, where they land isn’t our department
4. udev4096 ◴[] No.44486764[source]
Most of them are willing to look the "other way". So much for innovation and brainwashing the brightest minds with capitalism brainrot