Jefferies flags potential hit to Indian derivatives volumes as SEBI bars US trader Jane Street

Nuvama Wealth Management

07/07/2025 05:17

** Jefferies flags potential negative impact on Indian derivative volumes as the local markets regulator bans U.S. trading company Jane Street
** The securities regulator last week barred Jane Street from the market, saying a preliminary investigation found evidence it manipulated stock indexes
** Jane Street a significant foreign portfolio investor - Jefferies
** Brokerage says proprietary and high frequency traders expected to fill some of the volume loss
** Jefferies sees limited earnings impact for exchange operator BSE .BSESN; estimates ~1% of BSE’s derivatives turnover linked to Jane Street
** Brokerage expects Nuvama NUVA.NS earnings to take a 7%–8% hit as it estimates 15%–20% of the firm's asset services and institutional equities revenues are tied to Jane Street
** Derivatives volumes to be closely watched over the next week, especially around index expiries on Tuesday and Thursday - Jefferies

 (Reporting by Sethuraman NR)

 ((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))