NSE Derivatives Turnover Slumps 21% Post Jane Street Ban, Underscoring Market Concentration

The interim regulatory action against Jane Street by SEBI resulted in a sharp 21% weekly fall in the National Stock Exchange’s derivatives turnover, underlining the market’s heavy dependence on the US-based trading giant’s activity, as per news reports.

21% Drop in Derivatives Turnover Following SEBI Ban

On July 10, 2025, the NSE recorded a total derivatives turnover of ₹476.39 lakh crore, down from ₹605.23 lakh crore a week earlier. This 21.29% decline marked the first expiry session following SEBI’s interim order banning Jane Street for alleged manipulative trading strategies. The number of contracts traded also saw a sharp drop, falling to 25.25 crore from 31.92 crore, reflecting the company's deep entrenchment in the Indian options and futures space.

Impact of Ban on Index Options and Trading Volume

The decline mostly stemmed from a steep fall in index options trading. Turnover in weekly index options dropped 21.4% to ₹472.54 lakh crore, with contracts sliding from 31.4 crore to 24.73 crore. Jane Street, a proprietary trading firm, was a major player in this segment, and the disruption caused by its absence became immediately visible.

Details of Jane Street’s Trading Activities and Profits

According to SEBI, Jane Street Group generated ₹43,289.33 crore in profits solely from index options between January 1, 2023 and March 31, 2025. In contrast, cumulative losses across stock futures, index futures and cash segments stood at ₹7,687.21 crore. The group's most profitable day was January 1, 2024, with recorded earnings of ₹734.93 crore. Overall profits for the investigation period stood at ₹36,502.12 crore.

Manipulation Allegations and Unlawful Gains

SEBI identified 2 unauthorised trading strategies, namely Intraday Index Manipulation and Extended Marking the Close, used by Jane Street. These tactics allegedly manipulated BANKNIFTY index prices and contributed to ₹4,843.57 crore in unlawful gains, now ordered to be impounded by the regulator.

Read More: What’s Behind SEBI’s Ban on Jane Street? A Market Dispute Deep Dive!

Conclusion

The sharp decline in NSE’s derivatives turnover after Jane Street’s ban spotlights extensive reliance on a single overseas trader. With such a major participant removed, future volumes could remain under pressure unless market liquidity adjusts to the new equilibrium.

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