...Strengths: Weaknesses: + Highly profitable, leading exchange-traded fund market making franchise + Adequate capitalization + Dependence on short-term financing from prime brokers + Reliance on volatile principal trading revenue Outlook The stable outlook reflects S&P Global Ratings' expectation for solid, albeit potentially volatile, profitability, with no large losses as Jane Street Group LLC (Jane Street) continues to expand its trading business. Further, we expect the firm to maintain adequate risk-adjusted capitalization, including a risk-adjusted capital (RAC) ratio around 9% and required margin to equity below 75%, as well as liquidity to offset margin-call exposure, including margin to net trading capital below 60%. We could lower the ratings in the next 12 months if: + The firm suffers significant losses or prolonged weak results, + We expect the RAC ratio to fall below 8%, or + Liquidity deteriorates. We could raise the ratings over the same time horizon if we expect the firm to...
