India stock exchange derivative activity slips by a third since Jane Street trading ban

According to exchange data released on Thursday, trading in India's weekly equity index options has decreased by one-third since the country's market regulator banned the U.S. high-frequency trading firm Jane Street from participating in the local market earlier this month.

The National Stock Exchange of India, which is the largest derivatives exchange in the world by the number of contracts traded, experienced a nearly 36% drop in index options premium turnover over two weeks. This turnover is a key indicator of actual capital deployed and market risk appetite.

On Thursday, the options premium turnover was recorded at 396.26 billion rupees (approximately $4.6 billion), coinciding with the weekly options expiry date on the NSE.

The Securities and Exchange Board of India imposed the ban on Jane Street on July 4, stating that an investigation found the firm had manipulated stock indexes through its positions taken in derivatives.​