Sebi investigates high-frequency traders post Jane Street
India's market regulator SEBI is expanding its probe into foreign high-frequency trading (HFT) and quant firms after banning US-based Jane Street for manipulative trades.
The focus: companies using both foreign and Indian setups to dodge trading rules.
HFT players power India's massive derivatives market
Big HFT players like Citadel Securities and Millennium Management help power India's massive derivatives market.
SEBI's action uncovered complex schemes on the Bank Nifty index, with alleged illegal profits topping ₹4,800 crore.
While the goal is fairer markets, tighter rules could mean less trading activity and lower liquidity.
Other foreign HFT firms are under the microscope
SEBI, working with the National Stock Exchange, found Jane Street used its Indian arm to get around rules meant for foreign investors—pulling off tricky price moves over several years.
Now, other foreign HFT firms are under the microscope as regulators ramp up surveillance in this fast-moving market.