It has only been a few months since Jane Street had a spectacular run-in with the Securities and Exchange Board of India. And, while the matter has certainly not been put to bed, Jane Street has reported second quarter 2025 earnings. Which, as you can imagine, were very impressive.

Yesterday an Indian appeals court directed India’s securities regulator to respond to an application filed by Jane Street Group LLC.  The Securities Appellate Tribunal asked the Securities and Exchange Board of India to reply within three weeks to claims by Jane Street that documents crucial to its defence had been withheld.

Jane Street Second Quarter Results Impress

Last week Jane Street reported a record $10.1 billion in net trading for the second quarter of 2025. And even though it’s been a good year for investment banks, it’s been an even better year so far for the market maker.

For the same period JP Morgan reported $8.9 billion of markets revenue. As another comparison, Citi reported $5.879 billion of markets revenue for quarter 2.

Bloomberg covered the list of Wall Street leaders’ markets’ revenues for Quarter 2 below:

Jane Street gets a ‘BB+’ Rating

Interestingly, a look at Fitch Ratings doesn’t make Jane Street sound as positive as it could be. The global rating agency recently affirmed Jane Street as ‘BB+’.

While affirming the BB+ rating and noting ‘reasonable durability’ amid liquidity mitigations, Fitch flagged India-related uncertainty as a growth risk. Fitch’s report points out how this case may lead to a tightening of oversight by regulators across the world, harming growth prospects for the market maker.

There are several reasons for Jane Street to worry. It’s not just challenges with the Indian regulator, but there is also concern that capital growth might slow in relation to balance sheet growth. A big challenge may also appear if net adjusted leverage rises too high. The balance sheet leverage was 5.4x in first quarter 2025. Should this rise above 10, it could mean that Jane Street is downgraded.

There are also reasons to be positive for Jane Street. If the situation in India is resolved positively, this would help. As above, if leverage remains the same or drops lower than that could also help the market maker.

What About Citadel Securities and Hudson River Trading?

As Bloomberg pointed out, Jane Street isn’t the only market maker making big returns today. Citadel Securities and Hudson River Trading are also trying to grow market share in the space.

To make matters more challenging, Citadel Securities is ramping up its compensation and benefits expenses. This followed a small drop in the second quarter where the firm’s revenue declined by 8.4% compared to first quarter revenue. However, compensation and benefits have increased from $1.55 billion in the first six months of 2024, to $1.81 billion for the same period in 2025. The first half of 2025 was also the best ever for Citadel Securities, the firm has generated $5.77 billion in revenue so far this year.

The competition is not sleeping. Hudson River Trading reported $2.62 billion in net trading revenue during quarter 2 this year. During the same period in 2024, the firm reported only $1.29 billion. This is down to increased trading volumes so far this year, amid increased trading volumes fuelled by market volatility from Trump’s trade tariffs.

In the future, Jane Street, Citadel Securities, and Hudson River Trading may become household names in a market previously dominated by the G-SIBs like JP Morgan and Citi. There may still be new incumbents joining their ranks soon.

Author: Andy Samu

#JaneStreet #MarketMaking #FitchRatings #Leverage #Trading

See Also:

Should Jane Street be Banned in India? | Disruption Banking

Jane Street’s $20.5B Trading Surge Outpaces Citi, BofA | Disruption Banking

Disrupting Capital Markets in 2025: How Jane Street Rewrote the Rules | Disruption Banking