Global trading firm Jane Street Group has begun engaging more actively with policymakers in Washington, marking a shift from its traditionally low-profile approach. For the first time in nearly two decades, the firm has hired lobbyists and senior executives have held meetings with US lawmakers to explain its market-making business and rapid growth, according to people familiar with the discussions.
This increased outreach comes as Indian regulators prepare to conclude a major investigation into Jane Street’s trading activities. The Securities and Exchange Board of India (SEBI) has been probing additional strategies used by the firm, including alleged manipulation of benchmark indices through options trades such as “short straddles.” SEBI is expected to wrap up the initial phase of its investigation soon.
Jane Street’s growing regulatory scrutiny coincides with a period of exceptional financial performance. The firm’s trading revenue is projected to touch $30 billion by the end of 2025, around 50% higher than last year, even without contributions from India—previously one of its most lucrative markets.
In July, SEBI issued an interim order accusing Jane Street of serious market manipulation, temporarily barring it from Indian markets and directing it to place $570 million in escrow, representing alleged gains and penalties. Jane Street scaled back operations earlier in the year and halted all India-related trading after the order. The firm has denied wrongdoing and has filed an appeal, which is scheduled for hearing next month.
Meanwhile, lobbying disclosures show Jane Street paid Hogan Lovells $160,000 between July and September to engage US government agencies on financial regulation matters—its first such disclosure in 20 years. Meetings reportedly included discussions with the Treasury Department, Commerce Department, and the Executive Office of the President, particularly regarding its India operations.
After exiting India, Jane Street has expanded trading in other global markets, including US Treasuries, interest rates, and Asian ETFs. In the third quarter alone, it generated nearly $7 billion in trading revenue, surpassing most major US banks.
SEBI is also examining another trading strategy involving large-scale index options activity, which regulators believe may have allowed the firm to influence closing prices due to its dominant trading volumes. Further penalties or disgorgement of profits could follow, beyond the amount already held in escrow.
Jane Street maintains that its trading practices were legitimate arbitrage activities and has challenged SEBI’s findings, arguing that earlier regulatory reviews had found no manipulation in most cases. The appeals court is set to hear the matter on January 19.
