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

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518 points bwfan123 | 3 comments | 06 Jul 25 14:03 UTC | HN request time: 0.425s | source
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balderdash ◴[06 Jul 25 20:27 UTC] No.44483756[source]▶
Having formerly worked for an NYSE Specialist firm the role of market making is incredibly important, but many large-scale HFTs today operate in ways that either stretch the legal boundaries or exploit regulatory gaps. Many practices arguably amount to market manipulation in spirit, even if technically legal. Candidly, the regulators are either too lazy, stupid, ill equipped or uninterested to do anything about it.
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sheepscreek ◴[06 Jul 25 21:32 UTC] No.44484251[source]▶
SEBI’s bold move, at the expense of appearing unfriendly to foreign institutions, is commendable. I really hope that the SEC will wake up from its slumber and start investigating the tactics used by Citadel and its kind.
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benced ◴[06 Jul 25 23:13 UTC] No.44485008[source]▶
You can think “there should be a law” without endorsing the reckless and inconsistent ways that Indian regulatory agencies make up laws.
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zaptheimpaler ◴[06 Jul 25 23:41 UTC] No.44485178[source]▶
No, India does not view things exactly the same way the west does re: the rule of law vs. institutional power. The regulator has broad authority to stop market manipulation and support from the public that we do not want HFT style manipulation skimming money from everyone else in our markets. SEBI does not need to wait for a precisely worded law for every single type of market manipulation that will take years to pass and then be sidestepped in months on some technicality. They stopped bad activity quickly only because they have some actual power to make judgements and enforce them.
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1. throwaway2037 ◴[07 Jul 25 01:06 UTC] No.44485694[source]▶

    > HFT style manipulation skimming money from everyone else in our markets
This is a pretty bold statement. Do you have any evidence for market manipulation by major market makers? Else, it just reads like tin foil hat.
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2. whattheheckheck ◴[07 Jul 25 01:37 UTC] No.44485867[source]▶
Do you have any evidence of it reading like a tin foil hat? Otherwise it reads like someone doing that practice or servicing someone doing that practice and skirting responsibility
3. zaptheimpaler ◴[08 Jul 25 00:02 UTC] No.44495761[source]▶
Literally the case in question here is a crystal clear example of manipulation? What possible value does this trade provide to any other market participant, and where do the profits come from if it doesn't provide value?

More importantly, there is a lot of debate around what value HFT provides to markets, all I'm saying is that in general the Indian public does not believe its a net positive and SEBI acts accordingly. Maybe you disagree, that's fine.