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Jane Street barred from Indian markets as regulator freezes $566M

(www.cnbc.com)
518 points bwfan123 | 1 comments | 06 Jul 25 14:03 UTC | HN request time: 0.248s | source
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Zacharias030 ◴[06 Jul 25 21:37 UTC] No.44484304[source]▶
What is „market manipulation“ actually vs non-manipulative buying and selling to make a profit?
replies(3): >>44484515 #>>44484556 #>>44484571 #
1. Fade_Dance ◴[06 Jul 25 22:06 UTC] No.44484515[source]▶
Take the example of spoofing. A trader puts in a 10mm order on the bid in futures, and then pulls it once price gets near him. He then develops an automated trading strategy that capitalizes on the volatility spike in the options market when this bid hits the tape.

This example has two common characteristics of market manipulation - using size to push markets in a direction for personal benefit, and putting the bid in with sole intent to push the market, as in there was never any desire to see the order actually get filled.

If Jane Street was selling options that were only profitable within the context of a strategy that involved pushing massive size into the market near market close and forcing price down, that is likely categorized as manipulation. On the other hand, if they were moving inventory and in the process moved price, and they tweak their trading strategies to further profit from this, that's a more arguable position.