BSE To See Limited Impact Of Jane Street Saga, Say Analysts
Earnings hit for BSE may be low as FPIs form 3-4% of turnover, according to Jefferies.

SEBI's recent ban on Jane Street for market manipulation has sent ripples through the financial markets, with brokerages offering varied perspectives on the impact. Still, Jefferies and Goldman Sachs foresee limited effects on BSE. Goldman Sachs, however, has reduced target price to Rs 2,300 from Rs 2,430 for the stock.
SEBI's interim order to bar Jane Street from India's securities market due to alleged market manipulation has raised concerns about market volumes and earnings for key players. "As Jane Street was a large player, this may impact volumes that could partly be offset by any uptick in prop activity," Jefferies noted. The exchanges' options premium turnover on Friday was slightly below the two-month average, emphasising the importance of trends in the coming week, the brokerage highlighted.
BSE will see limited impact from the SEBI order, according to Jefferies. "Earnings hit for BSE may be low as FPIs form 3-4% of turnover."
Goldman Sachs echoed this sentiment, maintaining a neutral stance on BSE and modestly lowering its EPS to factor in recent volumes. "Going forward, we expect BSE cash equity market share will improve to 7.4% in the medium term, as the exchange has been adding new members and the recently launched Common contract note will help interoperability," Goldman Sachs noted.
Jefferies' conversations with market participants revealed a manageable impact from Jane Street's exit. "Prop traders/HFTs see a manageable impact as the fall in its turnover may be made up by props/HFTs as manipulative factors potentially reduce," they note. Additionally, there should not be a counter-party risk on Jane Street's contracts, as trades are covered by clearing corporations.