F&OMO and more: How Jane Street shook up Dalal Street

Jane Street is what traders call a prop firm—a proprietary trading house. It doesn’t take your money or anyone else’s. It uses its own

In April 2024, Jane Street — one of the world’s most secretive trading firms — did something uncharacteristic. It went to court. The firm sued rival hedge fund Millennium Management in New York, accusing two former employees of stealing a trading strategy. Not just any strategy. One that, according to Jane Street, had earned it nearly a billion dollars. The focus of the trade? India’s Bank Nifty options.

Sebi’s own report shows that 93% of F&O traders lose money. Most are young, from small towns, earning less than ₹5 lakh a year. They’re not financial engineers. They’re aspirants. Betting paychecks on what looks like a shortcut to wealth. (HT File)

That’s where this story begins, say Krishna Jha, a Bengaluru-based investor, and