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

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518 points bwfan123 | 1 comments | 06 Jul 25 14:03 UTC | HN request time: 0.206s | 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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anonu ◴[06 Jul 25 20:39 UTC] No.44483846[source]▶
That's sort of the very definition of arbitrage in today's modern markets - its not just the text book definition of "borrow money at a low interest rate and invest at a higher interest rate": there's latency arbs, regulatory arbs, microstructure arbs... They belong to the firms who can research and benefit from them before others figure it out.
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RandomThoughts3 ◴[06 Jul 25 21:09 UTC] No.44484069[source]▶
> its not just the text book definition of "borrow money at a low interest rate and invest at a higher interest rate"

That’s absolutely not the textbook definition of arbitrage.

Arbitrage is buy something somewhere at a price and resell it in a different market at a higher price. It’s just price arbitration hence the name.

There are no other kind of arbitrage implied when people talk about arbitrage. That’s what the word means.

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1. anonu ◴[07 Jul 25 11:05 UTC] No.44488955[source]▶
We can disagree on both points.

The example (ok - not exactly the definition - but close enough) is the Triangular Arbitrage in foreign exchange. This is cited in almost every textbook on explaining the topic.

The Wikipedia entry on arbitrage lists a dozen types of arbs. So while they may all be of the same "type" (buy low/sell high) there are nuances. It's like saying all cow meet is just beef: there are different cuts that taste different.