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518 points bwfan123 | 3 comments | | HN request time: 0.802s | 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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1. ExoticPearTree ◴[] No.44487671[source]
> However, given the scale of the operation, Jane Street's actions sure look like textbook market manipulation.

Everything is public. How is Jane Street manipulating the markets? Feels more like the Indians are sore losers because they couldn't see the patterns that Jane Street did and they lost some money. They should up their game, not punish the winner.

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2. immibis ◴[] No.44487699[source]
They didn't exploit a pricing pattern, they created one, which is market manipulation.
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3. ExoticPearTree ◴[] No.44488273[source]
> "While these actions were not a breach of any regulation"

^ quote from SEBI. Isn't market manipulation illegal pretty much anywhere?