Jane Street has no immediate plan to resume options trading

Jane Street has no immediate plan to resume options trading

Jane Street Group, a global proprietary trading powerhouse, has no immediate plan to resume options trading in the Indian market, according to recent developments. The Securities and Exchange Board of India (SEBI) imposed a temporary trading ban on Jane Street in July 2025, citing alleged manipulation of stock indexes through derivative positions. Despite the firm's compliance with SEBI's directive to deposit Rs 4,843.5 crore in an escrow account, it has not yet resumed trading operations [3].

The ban has significantly impacted the Indian derivatives market, particularly the options segment. Index options premium turnover on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) exchanges has declined since the ban, reflecting a decrease in real capital at play and risk appetite [1]. Proprietary traders have largely stayed on the sidelines, leading to persistently low volumes and a decrease in the number of unique clients in the derivatives segment.

The ban has also affected the trading volumes in the Nifty Bank index (BANKNIFTY), with aggregate trading volumes halving in five sessions ending Thursday, dropping to 495.75 million shares from 1.02 billion shares in the preceding sessions [1]. While some industry experts attribute the drop in volumes to the temporary nature of the ban, others suggest that the saga alone cannot explain the decline in trading activity.

The impact of the Jane Street ban extends beyond the derivatives market. Shares of the National Stock Exchange of India (NSE) have fallen almost 10% from their recent highs in the private market, mirroring the decline in the shares of smaller rival BSE Ltd. [2]. The ban has raised concerns about tighter trading rules and further delays in the NSE's long-pending listing plans.

Jane Street has disputed SEBI's allegations, stating that the trades in question were basic index arbitrage. However, the firm has not yet provided justiciable reasons to counter the interim order's conclusions. If the entities submit valid reasons, SEBI may revoke the restrictions and release the impounded gains. Until then, the future of Jane Street's trading operations in the Indian market remains uncertain.

References:
[1] Reuters. "India's ban on Jane Street hits options volumes, rebound expected in coming weeks." TradingView. July 2025. [https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3T8084:0-india-s-ban-on-jane-street-hits-options-volumes-rebound-expected-in-coming-weeks/](https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3T8084:0-india-s-ban-on-jane-street-hits-options-volumes-rebound-expected-in-coming-weeks/)
[2] The Economic Times. "Jane Street fallout hits top India bourses' pre-ipo valuation." July 2025. [https://economictimes.indiatimes.com/markets/stocks/news/jane-street-fallout-hits-top-india-bourses-pre-ipo-valuation/articleshow/122377269.cms](https://economictimes.indiatimes.com/markets/stocks/news/jane-street-fallout-hits-top-india-bourses-pre-ipo-valuation/articleshow/122377269.cms)
[3] TradingView. "Back in the game: Jane Street deposits Rs 4,843.5 crore as directed by SEBI, cleared to trade in Indian markets." July 2025. [https://www.tradingview.com/news/moneycontrol:790996888094b:0-back-in-the-game-jane-street-deposits-rs-4-843-5-crore-as-directed-by-sebi-cleared-to-trade-in-indian-markets/](https://www.tradingview.com/news/moneycontrol:790996888094b:0-back-in-the-game-jane-street-deposits-rs-4-843-5-crore-as-directed-by-sebi-cleared-to-trade-in-indian-markets/)