Jane Street had the largest positions in Nifty Bank options market, SEBI says

Market Regulator SEBI, in a statement to CNBC-TV18 on Friday, July 4, said that Jane Street, by far, hd the largest positions in the Nifty Bank options market.SEBI made this statement after barring Jane Street and its other related entities from the capital markets for making unlawful gains using manipulative strategies.
The fear of manipulation from other similar players may not be that much and that no more similar investigations or orders like Jane Street are expected, the statement said further.
SEBI also remains on the look out for any new risks, if any emerge.
SEBI’s order explained how Jane Street built its exposure in the Nifty Bank options during the first eight minutes of the trading day. Accordingly, trades in select put and call option contracts were built.”The trading pattern of JS Group in both Nifty Bank Call and Put options reflects a clear bearish sentiment in cash-equivalent terms,” SEBI’s order explained. In the call option segment, JS Group’s net cash-equivalent short exposure during the first eight minutes of trade on the Nifty Bank increased by ₹3,661.16 crore.

Similarly, the Nifty Bank put options segment, the positioning during this eight minutes was even more bearish, according to the SEBI order. The resulting net delta exposure was a negative ₹5,084 crore.

Net Delta refers to the total delta of the portfolio and considers both long and short positions in options and the assets. It essentially indicates whether the portfolio is net long or net short.

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