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.

As India’s market regulator, the Securities and Exchange Board of India (SEBI) banned the trading giant Jane Street Group from the local markets, which affected the Indian stock exchanges’ equity market fortunes in the week.