Jane Street Group Inc.

The stable rating outlook on Jane Street reflects our expectations of solid, albeit potentially volatile, profitability and a strong capital position. We also expect the company to maintain sufficient liquidity, including a margin to net trading capital ratio consistently below 70%. We could lower the ratings if we expect the capital position and/or the liquidity profile to weaken, of if Jane Street were to suffer significant losses or prolonged weak operating results. We could raise the ratings in the next 12 months if the firm were to significantly improve business stability and liquidity, while at the same time maintaining a strong capital position (RAC ratio in excess of 13% on a sustained basis). The 'bbb-' anchor starting point for our

...Our ratings on Jane Street reflect its highly profitable trading business, including a leading exchange-traded fund (ETF) market-making franchise, as well as its adequate and strengthening risk-adjusted capitalization. We believe the firm's reliance on short-term wholesale funding, along with its relatively high risk appetite and volatile principal trading business, partially offset these strengths. Jane Street is a New York-based holding company for several regulated broker-dealer and nonregulated subsidiaries in the U.S., Europe, and Asia-Pacific. The firm was founded in 2000, and its main business is principal trading and market-making in U.S. and non-U.S. securities. Initially focused on equity ETF market-making, Jane Street has diversified into additional asset classes like fixed income, options and commodities derivatives worldwide. Non-ETF trading now accounts for the majority of net trading profit. Jane Street has also expanded its client business to include wholesaling U.S. equity...

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