Jane Street Group has begun providing swaps to a growing cohort of leveraged exchange-traded funds, intensifying competition in a niche derivatives market. The firm entered the business earlier this year and furnished about $1.2 billion notional of swaps in the second quarter to roughly 75 leveraged and inverse single-stock ETFs listed in the US. Focusing on single-stock ETFs, Jane Street now accounts for approximately 2% of the segment.

Clear Street leads with about 21%, while Marex Group Ltd holds around 11%.\n\nThe move signals Wall Street's increasing appetite for servicing the fast-growing leveraged ETF market. Asym Research compiled the quarterly filings data tracking these swap positions. Jane Street's entry adds pressure to established players like Clear Street and Marex Group Ltd, which currently dominate the space.\n\nLeveraged ETFs use derivatives to amplify returns, making swaps a critical component of their structure.

The demand for these instruments continues to attract new dealers seeking a share of the lucrative market.\n\n.