...Strengths: Weaknesses: + Highly profitable, leading exchange-traded fund market making franchise + Adequate capitalization + Limited contingent liquidity + Dependence on short-term financing from prime brokers + Reliance on volatile principal trading revenue Outlook The stable outlook reflects S&P Global Ratings' expectation that Jane Street Group LLC will continue to grow with the exchange-traded fund (ETF) sector, with strong--albeit potentially volatile--earnings and adequate risk-adjusted capitalization. Specifically, we expect the firm to maintain adequate risk-adjusted capitalization, margin to equity below 75%, margin to trading capital below 60%, and adequate liquidity. We could lower the ratings in the next 12 months if: + The firm suffers significant losses or weak results, or + We expect the risk-adjusted capital (RAC) ratio to fall below 7%, or liquidity deteriorates. We could raise the ratings if: + We expect the RAC ratio to improve above 10% on a sustained basis, or + The...
