Patrick Boyle On Finance How Jane Street Made $4.3 Billion in India—Then Got Banned!
Jul 15, 2025
Delve into the controversial rise of Jane Street in India's derivatives market. Discover how the firm raked in $4.3 billion amid accusations of market manipulation. Explore the surge in retail trading that captivated investors while exposing risks and losses. Unpack the ongoing regulatory battles and the complex dynamics shaping the Indian stock landscape. This discussion highlights the intersection of sophisticated trading strategies and regulatory scrutiny in a rapidly evolving financial ecosystem.
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India's Massive Options Market
- India's equity derivatives trading dwarfs cash equities by over 300 times, fueled by aggressive retail options trading.
- This unique market creates conditions where well-timed trades can drastically influence expiry day price movements.
Market Transformation and Retail Frenzy
- India's market transformed with better infrastructure and regulatory reforms, attracting retail investors via zero-commission brokers and mobile apps.
- This surge made India's derivatives market the global leader in options volume, surpassing major indices like the S&P 500.
Retail Traders' Heavy Losses
- Despite strong market performance, Indian retail traders lost about $33 billion in four years due to risky leveraged trades.
- The pandemic lockdowns caused a surge in day trading, similar to the US meme stock craze, often with devastating results.