Proprietary trading firm Jane Street Group LLC disclosed a net trading revenue of $10.6 billion for the previous year, maintaining its position as a significant market-maker. This figure remained steady compared to the $10.7 billion recorded in 2022, reflecting subdued volatility levels. The firm’s adjusted earnings for 2023 stood at approximately $7.4 billion, down from $7.9 billion the year before.
Representatives from Jane Street declined to provide comments on the disclosed figures.
The revealed earnings shed light on the operations of Jane Street, which has expanded its market-making activities across various sectors including exchange traded funds, stocks, currencies, derivatives, and bonds. Although not on the scale of major Wall Street banks, the firm is pursuing growth initiatives, including venturing into options wholesaling, as indicated in documents obtained by Bloomberg News.
Jane Street is renowned for its dominance in ETF market-making and is among a select group of firms authorized to issue new shares in these investment vehicles.
Throughout the previous year, the firm maintained an average monthly ETF-trading volume of $527 billion, representing 24% of primary market activity in US-listed ETFs, according to the disclosed documents.
Proprietary trading firms like Jane Street are typically discreet, with their financial performance gradually surfacing as they seek debt financing for their operations. On Wednesday, the company initiated a $1.25 billion high-yield bond offering intended for general corporate purposes.
Jane Street currently holds approximately $4.3 billion in cash reserves, a figure that is expected to rise to around $5.6 billion following the completion of the bond transaction, which is anticipated to finalize by the end of Wednesday.
Featured Image: Freepik
