The Indian markets regulator's ban on Wall Street trading giant Jane Street has squeezed volumes in the country's options market, but traders expect activity to snap back as larger investors step in.

A temporary trading ban imposed by India’s securities regulator on Jane Street Group LLC is fueling concerns that volumes in the nation’s bustling derivatives market may drop, hurting business at the top exchange.

SEBI has banned the firm from India’s securities markets. The drama has thrown a bright light on Jane Street, a company of legendary opacity even in an industry that prioritises secrecy. And it could carry political and regulatory consequences, not just for Jane Street, but for an entire, ascendant industry of marketmakers.