After the recent Jane Street fiasco had come to light and rattled D-Street, Zee Business Managing Editor Anil Singhvi noted that the market watchdog has conducted the biggest scrutiny against the alleged entity. So, as this US-based firm continued to make big gains through illicit transactions for years now, here is a quick lowdown on how retail investors suffered amid the Jane Street blow and what retail investors should be doing to stay clear of these entities that engage in such large-scale market manipulation. But beforehand, here is in brief about the Jane Street fiasco.
Mayank Bansal, President, UAE-Based Hedge-Fund in a show with Zee Business highlighted and cautioned SEBI about what abnormalities facing issues specially in case of the options trading.
What was the Jane Street crisis hurting D-Street?
Jane Street, a US-based firm has landed in trouble in India after the market watchdog SEBI has barred the company due to the firm’s manipulative trading strategies that allegedly led to unlawful profits in the Indian stock market.
The company with a dominance in global markets and known for its high-frequency trading strategies, was involved in aggressive trading in the futures market that not only yielded high profits for them but also swayed the market itself.
The trades were orchestrated in such a way that influenced prices in such a way that helped them make large enough gains.
