JPMorgan Chase & Co. has scaled back financing extended to Jane Street, the proprietary trading firm, by roughly 5% of the firm's overall fixed-income credit lines across lenders, according to the Financial Times.
The move follows Jane Street's expansion into U.S. Treasury market-making, which has generated friction between the bank and the non-bank specialist. JPMorgan traders grew frustrated at providing prime financing to an entity that increasingly competes in the bank's core bond-dealing operations, the FT reported.
Non-bank trading specialists accounted for about 10% of total industry revenues across fixed income, currencies, and commodities in 2025, data from Crisil cited by the FT showed. The shift underscores how market makers outside the traditional banking system are capturing share in fixed-income markets once dominated by Wall Street's legacy franchises.
In July, Jane Street absorbed a $15 billion loss tied to artificial intelligence equity bets and an investment in Leopold Aschenbrenner's Situational Awareness hedge fund. Through August, the firm had posted roughly $40 billion in revenue for the current year, nearly matching JPMorgan's $41 billion division total for last year. The firm executed more than $900 billion in bond trades last year.
The financing reduction had no material impact on Jane Street's top-line performance, the report said.
JPMorgan has taken similar steps before. The bank previously curtailed certain trading capabilities extended to Citadel Securities after the market maker launched client-facing offerings that competed directly with JPMorgan's equities business, the FT noted.
Shares of JPMorgan Chase closed at $356.23 on November 9, up 0.76%, with after-hours trading at $356.84.
