Jane Street crackdown: Another reminder for retail of slim odds of winning

Sebi's probe into Jane Street's alleged market manipulation underscores how retail participants are outmatched in India's derivatives market dominated by large players

The Securities and Exchange Board of India (Sebi) order alleging market manipulation by Jane Street has served yet another stark warning to retail traders — that their odds of winning in the derivatives market are stacked against them.

 

Sebi's interim order reveals Jane Street booked a staggering gross profit of ₹43,281 crore in index options in just 21 expiry cycles.

 

One day alone – January 17, 2024 – it yielded profits of ₹735 crore, prompting detailed scrutiny by the regulator.

 

According to experts, the Sebi probe into Jane Street underscores the vulnerability of retail participants in a market dominated by