←back to thread

518 points bwfan123 | 1 comments | | HN request time: 0.204s | source
Show context
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.

replies(22): >>44483959 #>>44484082 #>>44484085 #>>44484194 #>>44484621 #>>44484974 #>>44485377 #>>44485557 #>>44485564 #>>44485830 #>>44485855 #>>44485873 #>>44486444 #>>44487132 #>>44487671 #>>44487911 #>>44487912 #>>44489362 #>>44490126 #>>44492949 #>>44497566 #>>44499330 #
naveen99 ◴[] No.44484082[source]
Ok, but what moron was selling them the puts , and not seeing the pattern after a couple of days of this ? Sebi logic seems questionable.
replies(9): >>44484167 #>>44484289 #>>44484580 #>>44484626 #>>44485596 #>>44485880 #>>44487404 #>>44490020 #>>44496789 #
lopatin ◴[] No.44484167[source]
Presumably retail options traders and less sophisticated firms
replies(2): >>44484312 #>>44488132 #
1. pjc50 ◴[] No.44488132[source]
I'm reminded of how the UK financial regulator banned "binary options" trading, since this was nearly always a scam run against unsophisticated retail investors who wanted to gamble and lost the majority of their "investment".

(one of the Yes Minister irregular verbs: I am providing liquidity to the market, you are long vega, he is a degenerate gambler)