July 4 (Reuters) - Shares of some Indian stockbrokers and exchange operator BSE fell on Friday after the country's markets regulator banned U.S. trading firm Jane Street from the local securities market over alleged manipulation in derivatives trading.
The share of algorithmic, or algo, trading in India's equity options market jumped to 62% of premium turnover in fiscal 2025, from 21% in 2010-11, data from the National Stock Exchange showed. India is the world's largest derivatives market.
Brokerage Angel One, which is one of India's top brokerage firms, was last down 6% on the day.
Nuvama Wealth Management, which is Jane Street's India trading partner, fell 6.7%.
Meanwhile, stock exchange BSE was trading 5.7% lower and Central Depository Services (India) fell 3%.
"We've already seen average premium turnover on the NSE and the BSE come down 17% and 13%, respectively, in June when SEBI (Securities and Exchange Board of India) began probing Jane Street," said Amit Chandra, vice president at HDFC Securities.
The SEBI posted an interim order on its website dated July 3 outlining that Jane Street would no longer be able to participate in the domestic securities market. The ban will stay in place till a final order on completion of investigations is issued.
The market regulator's action comes as half a dozen global trading firms, including Citadel Securities, IMC Trading, Millennium and Optiver, are ratcheting up their presence in India's booming derivatives markets.
Reporting by Vivek Kumar M and Kashish Tandon in Bengaluru; Editing by Rashmi Aich
Source: Reuters