The Securities and Exchange Board of India shared trade logs with Jane Street Group LLC regarding market manipulation allegations. At Monday’s hearing, lawyer Gaurav Joshi said, “the regulator had provided details of the time, quantity and pricing of actual trades.” The firm now faces pressure to respond to these claims.
The Securities and Exchange Board of India (SEBI), the country's market regulator, told a local court that it had shared with Jane Street Group LLC the trade logs it relied on for its preliminary order against the Wall Street trading firm, urging the company to respond to the allegations of market manipulation, Bloomberg reported.
Jane Street has been seeking additional documents and internal emails from the regulator to mount its defence against the interim order. At Monday's hearing, Jane Street's lawyer said SEBI should hand over the trading records used to accuse the firm of manipulating index prices and then profiting from options trading.
Gaurav Joshi, a lawyer representing the Securities and Exchange Board of India, said the regulator had provided details of the time, quantity and pricing of actual trades. SEBI has withheld the names and tax identification details of counterparties and will not share additional information because it did not base the probe on those records, Joshi said.
Until Monday, Jane Street's lawyer had argued that most of the information in the trade logs was redacted, as per the report.
The report said that the trades are central to the regulator's allegation that Jane Street influenced the pricing of stocks in the NSE Nifty Bank Index, a closely watched benchmark that serves as the foundation for heavily traded options contracts.
The outcome of the dispute could shape global trading firms' perception of how high-frequency traders would be regulated in one of the world's largest derivatives markets.