Jane Street scandal slashes NSE options premium turnover by 35%

New Delhi: The Sebi crackdown on US trading giant Jane Street has sent ripples through the Indian derivatives market, with the National Stock Exchange (NSE) witnessing a steep 35 per cent fall in index options premium turnover.

On the July 17 weekly expiry, the turnover fell to Rs 39,625.77 crore, sharply down from the June average of Rs 60,605 crore, according to NSE data.

The slide in turnover has been consistent through July. From Rs 61,511 crore on July 3, expiry day volumes dropped to Rs 45,884 crore on July 10, before breaching the Rs 40,000 crore mark this week — a significant psychological and market liquidity threshold.

Index options premium turnover is closely watched by market participants as a proxy for real capital deployment and trading intensity. Expiry Thursdays, typically the busiest day of the week for options activity, have seen a sharp slump since the enforcement action against Jane Street.

Sebi banned the global high-frequency trading firm earlier this month in a major market manipulation case, accusing it of distorting market structure with outsized and frequent trades. The investigation found Jane Street consistently took on the largest risks in cash-equivalent terms, particularly on expiry days.

The firm reportedly earned Rs 36,502 crore in profits across segments during the review period. In an attempt to regain entry, Jane Street has deposited Rs 4,843.58 crore in an escrow account and appealed for the trading ban to be lifted. Sebi is currently reviewing

the request.