Hudson River Trading

Last updated
Hudson River Trading LLC
Company type Private
Industry Financial services
Headquarters
New York City
,
U.S.
Products Algorithmic trading [1]
OwnerJason Carroll [2]
Website hudsonrivertrading.com

Hudson River Trading is an American quantitative trading firm headquartered in New York City and founded in 2002. [3] [4] In 2014, it accounted for about 5% of all trading in the United States. [5] Hudson River Trading employs over 800 people in offices around the world, including New York, Chicago, Austin, Boulder, London, Singapore, Shanghai, Mumbai, and Dublin. [6] The firm focuses on research and development of automated trading algorithms using mathematical techniques, and trades on over 100 markets worldwide.

Contents

The company is a member of the Principal Traders Group, an advisory group formed by the Futures Industry Association (FIA). [7]

Business

Trading

Hudson River Trading is a multi-asset class firm that trades across various time horizons. It differs from stereotypical high-frequency trading firms in several important ways: it holds about 25% of its trading capital overnight (unlike most high-frequency trading firms that hold almost nothing overnight), its average holding time is about five minutes as opposed to the sub-second times observed for some high-frequency trading firms, and it does less than 1% of its trading in dark pools, the lightly regulated private trading venues under scrutiny from regulators. [5]

Development

In January 2014, Hudson River Trading and three other quantitative trading firms formed the Modern Markets Initiative, a trade lobbying group. [8] In August 2014, Bart Chilton was added as an advisor to the group. [9] [10]

On January 16, 2018, Hudson River Trading acquired its rival firm Sun Trading, a global market maker that traded on over 115 exchanges. [11]

In the first quarter of 2021, Bloomberg reported that Hudson River Trading reaped about $1.2 billion from trading, amid heightened market volatility. [12]

Employees

The firm hires programmers, software engineers, and mathematicians to develop and improve its trading strategies. Its head of business development, Adam Nunes, has been cited in a Wall Street Journal article on financial firms' efforts to recruit programming talent away from Silicon Valley and his reasons for optimism about their ability to do so. [13]

Government regulation

In March 2014, New York Attorney General Eric Schneiderman announced a probe into high-frequency traders, including Hudson River Trading, getting early access to raw stock market feeds at an annual price of $180,000. [14] Hudson River Trading's head of business development, Adam Nunes, defended the company's business practices in statements made to Newsweek , noting that Wall Street traders also had access to the feeds at the same price and many of them already made use of them. [15]

In July 2014, the Securities and Exchange Commission (SEC) in the United States launched a probe into ten top high-frequency trading firms, including Hudson River Trading. [16]

See also

References

  1. ↑ Patterson, Scott; Rogow, Geoffrey (August 1, 2009). "What's Behind High-Frequency Trading". The Wall Street Journal.
  2. ↑ "BrockerCheck Report" (PDF). Retrieved Apr 22, 2024.
  3. ↑ "Hudson River Trading" . Retrieved February 16, 2015.
  4. ↑ Cave, Tim (November 20, 2013). "A Cheat Sheet on European High Frequency Trading Firms". Wall Street Journal . Retrieved February 16, 2015.
  5. 1 2 Hope, Bradley (October 15, 2014). "Inside Hudson River, the Firm That Does 5% of All Stock Trading. In 2021, it accounts for more than 15% of all trading in the United States". Wall Street Journal . Retrieved February 16, 2015.
  6. ↑ "Equity trader Hudson River picks Dublin for post-Brexit EU hub". Irish Times . October 15, 2018.
  7. ↑ "Membership" . Retrieved November 9, 2023.
  8. ↑ Hope, Bradley; Patterson, Scott (January 5, 2014). "High-Speed Traders Form Trade Group to Press Case". Wall Street Journal . Retrieved February 16, 2015.
  9. ↑ Hope, Bradley (August 21, 2014). "Former Foe of Speed Traders Now a Consultant". Wall Street Journal . Retrieved February 16, 2015.
  10. ↑ "HFT 'cheetahs' get Chilton as an adviser". Financial Times . August 21, 2014. Retrieved February 16, 2015.
  11. ↑ "Hudson River Trading to buy rival HFT firm Sun Trading".
  12. ↑ "Prop Trader Hudson River Reaps $1 Billion in Frenzied Quarter".
  13. ↑ Peterson, Kristina (January 18, 2011). "Battle for Tech Geeks: Street vs. Silicon Valley". Wall Street Journal . Retrieved February 16, 2015.
  14. ↑ Johnson, Andrew R. (March 18, 2014). "N.Y. Probes Alleged Advantages Given to High-Speed Traders. Probe Centers on High-Speed Traders Getting Early Access to Data Feed". Wall Street Journal . Retrieved February 16, 2015.
  15. ↑ Leah McGrath Goldman (May 30, 2014). "Is Wall Street Pulling a Fast One?". NewsWeek . Retrieved February 16, 2015.
  16. ↑ McCrank, John (July 17, 2014). "Exclusive: SEC targets 10 firms in high frequency trading probe - SEC document". Reuters and Yahoo! Finance . Retrieved February 16, 2015.
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