Hey everyone,
Jane Street is undergoing a court case involving the theft of its highly valuable Options trading strategy by two of its employees. The strategy is claimed to have made $ 1 billion in profits in Indian markets. A lot of experts believe that the enormous profit might be coming at the expense of the retail options traders.
As per wikipedia,
Jane Street Capital, typically referred to as Jane Street, is a global proprietary trading firm. Jane Street Capital employs more than 2,000 people in five offices in New York, London, Hong Kong, Amsterdam, and Singapore. The firm trades a broad range of asset classes on more than 200 venues in 45 countries.
The company is one of the largest market-makers, trading more than $17 trillion worth of securities in 2020. It was considered to have helped keep bond exchange-traded funds(ETFs) liquid during the market turmoil in 2020.
Other big trading companies like Optiver and Citadel Securities are also diving into India. Plus, lots of hedge funds are joining in. But here’s the twist: more everyday people in India are getting into trading, too. They might not be as experienced as the big shots.
It seems like the big winners could be the companies that make markets, especially foreign hedge funds. India’s markets are becoming more liquid, which is drawing in these foreign firms.
Considering the increasing participation of everyday traders, do you believe that foreign hedge funds will emerge as the primary beneficiaries, potentially leaving many retail traders vulnerable to significant losses?