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Jane Street suffers $15B hit after meltdown at Situational Awareness

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Re: Jane Street suffers $15B hit after meltdown at Situational Awareness

#21

Post by JumpCrisscross »

jt2190 wrote: post #10
JumpCrisscross wrote: post #6

“By our calculations, Jane Street ponied up a one-off $200mn to do the deal and then locked in a further $200mn of costs per annum, at least in part, to avoid us gawping at their numbers every quarter. Wowsers” [1]. [1] https://www.ft.com/content/28a51284-98cc-4767-a306-0540d2656...

> Jane Street has generated more than USD 40 000 000 000 in net trading revenues in the year to Friday, even accounting for the July loss, which exceeds its entire haul for 2025, according to one of the people familiar with the matter.

Sure. It’s still an embarrassing hit they’d want to keep secret, particularly if they’re still in those positions. Paying hundreds of millions to hide a $15bn MtM loss makes sense.

Re: Jane Street suffers $15B hit after meltdown at Situational Awareness

#23

Post by thechairman12 »

dmix wrote: post #16
totetsu wrote: post #7

Earlier quoted context omitted.

https://youtu.be/rE75WvOtcu8 This video from Patrick boyle has a lot of detail.

Always been a bit wary of Patrick. He reminds me of those people who in the 1990s/2000s would have become professional talking head guests on CNN. The older ex-academic/ex-industry guys who knew how to spin popular news stories into sound bites for the general public, while offering a veneer of authority. I'd rather get analysis from people who don't chase pop news stories for a living.

agree

Re: Jane Street suffers $15B hit after meltdown at Situational Awareness

#24

Post by fancyfredbot »

Original headline is "Jane Street suffers $15bn loss in July market ructions".

HN guidelines do request use of original title and in this specific case the change of title is misleading by implying that situational awareness directly caused losses at JS.

In the text it says "the US trading firm was wrongfooted during last month’s market ructions including the meltdown at AI-focused hedge fund Situational Awareness" so while SA is mentioned the implications of a direct link to the losses is less strong.

edit: more detail in https://www.reuters.com/business/finance/jane-street-took-15... confirms some losses linked directly to SA and some losses to their own positions.

Re: Jane Street suffers $15B hit after meltdown at Situational Awareness

#25

Post by margalabargala »

otterley wrote: post #11

They're still up $25B for the year, so it's hard to feel bad for them :-) On a more serious note, Jane Street has hired some very impressive technical talent. I'd work for them, myself, if I didn't have to relocate to Chicago.

[flagged]

Re: Jane Street suffers $15B hit after meltdown at Situational Awareness

#26

Post by [deleted] »

fancyfredbot wrote: post #24

Original headline is "Jane Street suffers $15bn loss in July market ructions". HN guidelines do request use of original title and in this specific case the change of title is misleading by implying that situational awareness directly caused losses at JS. In the text it says "the US trading firm was wrongfooted during last month’s market ructions including the meltdown at AI-focused hedge fund Situational Awareness" s…

[deleted]

Re: Jane Street suffers $15B hit after meltdown at Situational Awareness

#27

Post by inigyou »

dmix wrote: post #16
totetsu wrote: post #7

Earlier quoted context omitted.

https://youtu.be/rE75WvOtcu8 This video from Patrick boyle has a lot of detail.

Always been a bit wary of Patrick. He reminds me of those people who in the 1990s/2000s would have become professional talking head guests on CNN. The older ex-academic/ex-industry guys who knew how to spin popular news stories into sound bites for the general public, while offering a veneer of authority. I'd rather get analysis from people who don't chase pop news stories for a living.

That leaves basically nobody.

Re: Jane Street suffers $15B hit after meltdown at Situational Awareness

#28

Post by bb-connor »

dmix wrote: post #16
totetsu wrote: post #7

Earlier quoted context omitted.

https://youtu.be/rE75WvOtcu8 This video from Patrick boyle has a lot of detail.

Always been a bit wary of Patrick. He reminds me of those people who in the 1990s/2000s would have become professional talking head guests on CNN. The older ex-academic/ex-industry guys who knew how to spin popular news stories into sound bites for the general public, while offering a veneer of authority. I'd rather get analysis from people who don't chase pop news stories for a living.

100%

Re: Jane Street suffers $15B hit after meltdown at Situational Awareness

#29

Post by fancyfredbot »

dmix wrote: post #16
totetsu wrote: post #7

Earlier quoted context omitted.

https://youtu.be/rE75WvOtcu8 This video from Patrick boyle has a lot of detail.

Always been a bit wary of Patrick. He reminds me of those people who in the 1990s/2000s would have become professional talking head guests on CNN. The older ex-academic/ex-industry guys who knew how to spin popular news stories into sound bites for the general public, while offering a veneer of authority. I'd rather get analysis from people who don't chase pop news stories for a living.

He's offering entertainment not investing advice.

But he is very entertaining and has more than a veneer of authority. His early educational YouTube videos covering topics like derivatives pricing are genuinely very good.

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