Core Insights - Jane Street has hired lobbyists for the first time in 20 years and is actively engaging with lawmakers to explain its market-making operations and significant trading profits, which exceed those of many major investment banks [1][16] - The Securities and Exchange Board of India (SEBI) is concluding its investigation into Jane Street's trading strategies, which includes allegations of market manipulation [2][6] - Jane Street's trading revenue is projected to reach $30 billion by the end of 2025, marking a 50% increase from the previous record-setting year, excluding revenue from India [3][16] Regulatory Developments - SEBI accused Jane Street of "egregious" market manipulation in July, temporarily banning the firm from Indian markets and requiring it to place $570 million in escrow [6][16] - Jane Street has filed an appeal against SEBI's accusations, which will be heard next month, maintaining that its trading practices have always been proper [7][15] - Investigators have identified additional trading strategies that may be manipulative, potentially leading to further financial penalties beyond the $570 million already in escrow [8][16] Trading Strategies - Jane Street reportedly made approximately $4.3 billion from trading in India between January 2023 and March 2025, according to SEBI's interim order [8][16] - One of the questioned strategies involves the simultaneous selling of index call and put options at the same strike price, known as a "short straddle," which is commonly used in trading [9][10] - SEBI alleges that Jane Street's significant trading volume, at times constituting 40% of the market, may have allowed it to manipulate closing prices to its advantage [10][16] Financial Performance - In the third quarter, Jane Street generated nearly $7 billion in trading revenue, ranking just behind JPMorgan Chase and Goldman Sachs among U.S. banks [16] - The firm has shifted its trading focus to other markets, including U.S. Treasuries and ETFs in Asia, after reducing its exposure to India [8][16]