JPMorgan Dials Back Financing to Rising Star Jane Street

JPMorgan Chase has reduced its financing to Jane Street, a quantitative trading firm that has been expanding into U.S. Treasury market-making.

The move marks growing friction between Wall Street's legacy dealers and non-bank trading firms like Jane Street, which have captured significant market share in fixed-income markets.

Jane Street executed over $900 billion in bond trades last year, generating around $40 billion in revenue, roughly matching JPMorgan's $41 billion division total.

The financing reduction represented about 5% of Jane Street's overall fixed-income credit lines across lenders and did not have a material impact on the firm's top-line performance.