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.

The Indian markets regulator's ban on Wall Street trading giant Jane Street has reduced volumes in the nation's options market, yet traders anticipate that activity will rebound as bigger investors get involved.