F&O trade volumes plunge following Jane Street ban
India's futures and options (F&O) scene just saw a big dip after SEBI banned global trading firm Jane Street on July 3 for alleged price manipulation.
The move has made trading quieter and hit market activity hard, especially on the National Stock Exchange (NSE).
Jane Street ban shakes up system
If you follow markets or invest, here's the impact: NSE index options turnover dropped 17%, and expiry day volumes fell over 21%—that's a huge chunk of action gone.
Futures and options volumes also slid sharply, with share prices of both NSE and BSE taking a hit.
It shows how much one player can shake up the system.
Jane Street denies any foul play, plans to fight back
SEBI says Jane Street manipulated Bank Nifty trades, slapping them with a ₹4,840 crore fine and freezing $567 million in funds.
Jane Street denies any foul play and plans to fight back in court.
Early July was already slow due to low volatility, but things picked up after Nifty broke out of its range on July 11.
Experts think liquidity will bounce back as mutual funds roll out new investment products built around derivatives.