D-Street Options attracts attention as US trading company’s billion-dollar capital turnaround strategy
Jane Street, which claims to trade a variety of asset classes from more than 200 locations in 45 countries through five global offices, is suing Millennium Management and two former employees who it claims stole its confidential and “incredibly valuable” trading strategies. I’m raising it. This month, according to a Bloomberg report.
Millennium Management is a New York-based investment management firm that provides multi-strategy hedge fund services.
That the so-called trading strategy was focused on delivery options only became clear after Millennium’s lawyers mistakenly identified deliveries during Friday’s hearing, the report said.
Although some details of the strategy are unclear at this time, the case provides insight into how secretive high-speed trading firms are profiting from a market that has surged over the past decade to become the world’s largest by number of options. The contract was traded.
Jane Street’s competitors, including Optiver, Citadel Securities, IMC Trading and Jump Trading, have all been expanding in India, along with numerous hedge funds and others.
“Options market making is a ‘winner takes all game,’” the Times of India report quotes Anant Jatia, Mumbai founder and chief investment officer of Greenland Investment Management, a systematic investment firm that manages more than $1 billion, as saying. “Market formation in India has become highly competitive where fights are fought in nanoseconds rather than microseconds,” the report added.
The report also explains that there is growing debate on D Street over the nature of Jane Street’s strategy, with concerns expressed about the company’s alleged excessive profits that may come at the expense of simple, ordinary merchants.
The Securities and Exchange Board of India (Sebi) estimates that more than 90% of active retail traders have suffered losses due to derivatives, according to India’s market regulator. Retail investors account for about 35% of options trading in India.
“As retail participation in derivatives has gained popularity in the post-COVID era, these players may be misled by complex market maker positioning,” the ToI report quoted Tejas Shah, head of derivatives trading at Equirus Securities, as saying. He said.
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