According to reports, trading giant Jane Street is reportedly going to defend options trading in India, stating that retail demand is a key factor.

Insiders say that Jane Street Group LLC is expected to defend its controversial India options trades, claiming it is in response to a large demand from retail investors. The trading giant has been working to address market manipulation allegations from the Securities and Exchange Board of India. The regulatory body accused Jane Street in early July of holding large positions and artificially influencing stock and futures market prices in India, causing market fluctuations in favor of its options bets on several trading days. Jane Street said on Monday that it has sought an extension to have more time to respond. Last week, the Securities and Exchange Board of India lifted the temporary trading ban on Jane Street, after the company deposited 48.4 billion rupees of alleged "illicit gains" into an escrow account. Insiders expect the company to argue that it was eager to provide convenience for retail investors' options bets, knowing that these bets were essentially un-hedged. Insiders say that the company's hedging activity in India was lower than in other markets, and it spread out the hedging activity over several hours on January 17, 2024, to minimize its impact on the market, which the company may use as an explanation.