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518 points bwfan123 | 2 comments | | HN request time: 0.419s | 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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Den_VR ◴[] No.44484194[source]
Maybe, but given the reputation of Indian regulators I’m skeptical Jane Street’s only sin was the alleged market manipulation.

People may recall the matter involving Adani Group. https://hindenburgresearch.com/adani-update-sebi/

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dyauspitr ◴[] No.44484217[source]
Seems presumptive to slander an entire nations regulatory group on a single/couple of examples. By that metric the regulatory group in the US is completely bought out since they let 2008 happen.
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1. throwaway2037 ◴[] No.44485638[source]

    > Seems presumptive to slander an entire nations regulatory group on a single/couple of examples.
How about Germany's BAFIN regulator after VW's Deiselgate or Wirecard bankruptcy? BAFIN's response was weak and slow in both cases. I am willing to slander them for "just" those two mistakes.
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2. Lionga ◴[] No.44488131[source]
That is not slander, you are being more then generous with them. BAFIN's employees were trading Wirecard for profit to skim profits, not just "weak and slow". Calling them highly corrupt is probably a fair statement and not slander