Jane Street is in news again but not because of any SEBI directive. The US-based firm recorded a net trading revenue of $10.1 billion in the second quarter, well ahead of Wall Street’s biggest banks. This is as per a recent report by Bloomberg. All eyes are now on what’s fueling this surge? Many market observers indicate that the trading giant may have reaped benefit of trade war volatility in the market.
Bloomberg reported, citing sources, that the Q2 revenue more than doubled compared to a year ago, resulting in Jane Street achieving a record first-half trading revenue of $17.3 billion. This is just a shade less that the total revenue earned by the company in 2024.
Jane Street: Net trading revenue in 2024
In the previous year, Jane Street achieved a historic $20.5 billion in net trading revenue, surpassing the combined total for that sector at Bank of America Corp. and Citigroup Inc.
Jane Street’s total for 2024 was nearly twice the $10.6 billion reported the previous year. Its main rival, Citadel Securities, achieved a total trading revenue of $9.7 billion in the last year.
Trading volume has stayed high since President Donald Trump enacted a series of tariffs on various countries at the start of this year. This disruption created a demand for trading services as investors adjusted their positions in response to the evolving economic environment, benefiting banks and market makers who assist clients in buying and selling assets.
The gains of Jane Street followed a regulatory crackdown in India regarding the company’s trading strategy in the Indian market. However, Bloomberg reported that information on the revenue breakdown in terms of geography wasn’t available right away.
How has peers performed?
Hudson River Trading, one of Jane Street’s rivals, net trading revenue come in more than double to $2.62 billion in the second quarter. Another rival, Citadel Securities, posted a drop in net trading revenue in the same timeframe. However, the company still achieved a record high of $5.77 billion for the first half of the year.
Jane Street has informed its debt investors that it achieved a record net trading revenue of $7.2 billion in the first quarter, an increase from approximately $4.4 billion during the first three months of 2024. The firm recorded a net income of $6.9 billion in the second quarter, in contrast to $2.4 billion in the same period from the previous year.