Jane Street

Jane Street to out earn in trading Jane Street's Trading Haul Tape Biggest Banks The market maker pulled in $39.8 trillion from trading Jane Street $39.8 B $39.8 B of revenue last year with just 3500 employees But how did they win and who lost? Obviously strategies are not public are some interesting themes TARIFF SHOCKS were a huge driver hit last year completely broke down and thousands of individual bonds simultaneously because it's harder to trade 500 individual bonds versus a single ETF ETF often depegs from the underlying assets creating arbitrage opportunities also benefited STRUCTURAL ADVANTAGES to win above banks and other firms NOT A BANK constrained by rules like the that prevents banks from gambling NOT A HIGH FREQ TRADING FIRM hold positions for longer and finally they NO DEPOSITORS Jane Street's members' equity - or the firepower the company uses to support its trading operations without having to tap outside capital - has swelled nearly 2,000% since 2016 to $45 billion, said the people. all this together they can deploy their multi** billion dollar balance sheet so when banks are pulling out to manage risk or high frequency firms are exiting early hold positions for hours or days instead of milliseconds capture the full snapback after volatility Jane Street stayed in they could price liquidity at a premium Jane street 41% 41% all bond ETF trading volume Jane Street is particularly dominant in fixed income ETFs, accounting for 41 percent of all primary market activity according to its bond prospectus. The which they're no longer just arbitrageurs but actually LIQUIDITY PROVIDERS to pension funds and large asset managers interestingly VENTURE BETS Jane Street has also made significant investments in Anthropic and Thinking Machines Lab, which have contributed to early investors in anthropic $830M revenue quarter last year quarter last year. But their model isn't without controversy regulators alleged internal capital bases. The firm has kept growing despite recent scrutiny, including accusations from regulators in India in July that Jane Street manipulated markets while running what had once been one of its most lucrative trading strategies, allegations the created volatility to profit from options positions in the US they're being tied to things like collapse of Terraform labs and alleged insider trading