Jane Street Group LLC

The positive outlook on Jane Street reflects the possibility that we could raise the ratings in the next 12-18 months if the company sustains the benefits from its enhanced scale and increased diversification, while also maintaining its improved funding and strong capital position. We could raise the ratings in the next 12-18 months if the company consolidates its market share gains, continues to diversify across asset classes and geographies, and strengthens its liquidity--all while maintaining its solid capital position. We could revise the outlook to stable if the company's funding and liquidity weaken or if its capital position deteriorates. The 'bbb-' anchor (the starting point for our rating) is in line with the anchor of other rated U.S. securities firms

...Our ratings on Jane Street reflect its highly profitable trading business as a market-maker and liquidity provider, as well as its strong risk-adjusted capitalization and improving funding. 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 Group LLC 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 exchange-traded fund (ETF) market-making, Jane Street has successfully 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...

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