JPMorgan Cuts Ties with Jane Street Amid Bond Market Rivalry

JPMorgan Chase & Co has significantly scaled back its financing of Jane Street following the quantitative trading giant's expansion into U.S. Treasury market-making.

The decision highlights growing friction between Wall Street's legacy dealers and non-bank trading firms, such as Jane Street, which are increasingly capturing market share across fixed-income markets.

JPMorgan's reduced financing represented roughly 5% of Jane Street's overall fixed-income credit lines, but had no material impact on the firm's top-line performance.

The move signals escalating internal tensions at JPMorgan, where traders voiced frustration over providing prime financing to an entity directly encroaching on its core bond-dealing franchise.