Jane Street Capital

Last updated
Jane Street Capital
Company type Private
Industry Financial services
FoundedAugust 31, 1999;25 years ago (1999-08-31) [1]
Founders
  • Tim Reynolds
  • Rob Granieri
  • Marc Gerstein
  • Michael Jenkins
Headquarters 250 Vesey Street,
New York City
,
U.S.
Products High-frequency trading, Market maker [2]
Number of employees
2,631 [3]
ASN
Website www.janestreet.com

Jane Street Capital is a global proprietary trading firm. [4] It employs more than 2,600 [5] people in six offices in New York, London, Hong Kong, Amsterdam, Chicago, and Singapore, and trades a broad range of asset classes on more than 200 venues in 45 countries. [6]

Contents

It is among the principal market-makers – in 2020 it traded more than $17 trillion worth of securities. It was considered to have helped keep bond exchange-traded funds (ETFs) liquid during the market turmoil in 2020. [7]

History

Jane Street was is co-founded by Tim Reynolds, Rob Granieri, Marc Gerstein, and Michael Jenkins. [7] [8] Reynolds, Granieri, and Jenkins were formerly traders at Susquehanna International Group. [9] It was started in either 1999 [1] [8] [10] [11] or 2000. [4]

In 2012, Tim Reynolds stepped down from his position running the firm. [9]

Activities

The firm ended 2020 having traded $4 trillion in global equities, $1.4 trillion in bonds, and $3.9 trillion in ETFs. [12] During the COVID-19 pandemic, the firm saw its revenue jump 54% to a record of $10.6 billion during the year ended in March 2021. [13]

As of 2021, its trading capital was about $15bn. As well as high-frequency trading, it in some cases maintained positions for hours, even days or sometimes weeks, which is essential for ETFs that track less-traded markets. On any given day, it was holding about $50bn of securities. It is an authorised participant [14] in 2,600 ETFs and lead market-maker on 506 ETFs, and plays an important role in maintaining ETF liquidity. [15]

In 2023, the company generated $10.6bn in net trading revenue with adjusted earnings of $7.4bn. It released these numbers as part of a debt deal which aimed to expand the amount of cash on Jane Street's balance sheet from $4.3bn to $5.6bn. [16]

Technology

Almost all of its software is written in the OCaml programming language. [17] [15] [18] [19] [20]

Leadership and culture

The company is informally led by a group of 30 or 40 senior executives.

The firm's culture includes a focus on the risks of improbable but catastrophic crashes. In addition to hedging at trading desk level, Jane Street at company level spends $50m-$75m a year on put options. [15]

Lawsuits

In April 2024, the firm brought a lawsuit against Millennium Management alleging that Millennium stole its trading strategy through engaging two of its former traders, Douglas Schadewald and Daniel Spottiswood. [21] The firm claimed the strategy, which traded options in NSE/BSE India, earned about $1 billion in 2023. [22]

Notable past employees

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References

  1. 1 2 "Jane Street Capital, LLC :: Delaware (US) :: OpenCorporates". opencorporates.com.
  2. ↑ Patterson, Scott; Rogow, Geoffrey (August 1, 2009). "What's Behind High-Frequency Trading". The Wall Street Journal.
  3. ↑ "Jane Street Scores $10.6 Billion Trading Haul". Bloomberg.com. 17 April 2024.
  4. 1 2 "Our Story". Jane Street Capital. Archived from the original on August 31, 2017. Retrieved August 1, 2014.
  5. ↑ "Who We Are :: Jane Street". www.janestreet.com. Retrieved 2024-05-22.
  6. ↑ "What We Do :: Jane Street". www.janestreet.com. Retrieved 2018-08-08.
  7. 1 2 Wigglesworth, Robin (28 January 2021). "Jane Street: the top Wall Street firm 'no one's heard of'". Financial Times . Retrieved 29 January 2021.
  8. 1 2 "Jane Street's Reynolds Turns to Art With Trading Fortune". Bloomberg.com. 14 June 2019 – via www.bloomberg.com.
  9. 1 2 "The Poker Aces Playing a Key Hand in the $5 Trillion ETF Market". 20 November 2018.
  10. ↑ "Jane Street Capital, LLC: Private Company Information". www.bloomberg.com.
  11. ↑ "Division of Corporations - Filing". icis.corp.delaware.gov.
  12. ↑ "Financial Times". 28 January 2021.
  13. ↑ "Jane Street, DRW Traders Made Billions as Virus Hit Markets". Bloomberg.com. 18 June 2021.
  14. ↑ Boyde, Emma (September 28, 2020). "What are authorised participants?".
  15. 1 2 3 Wigglesworth, Robin (January 28, 2021). "Jane Street: the top Wall Street firm 'no one's heard of'".
  16. ↑ "Jane Street Scores $10.6 Billion Trading Haul". Bloomberg.com. 17 April 2024.
  17. ↑ "Automated Trading and OCaml with Yaron Minsky". Software Engineering Daily. November 9, 2015.
  18. ↑ "Technology :: Jane Street". Jane Street Capital. Retrieved 15 August 2023.
  19. ↑ "Jane and the Compiler". Jane Street Capital. Retrieved 15 August 2023.
  20. ↑ "Jane Street Open Source". Jane Street Capital. Retrieved 15 August 2023.
  21. ↑ "Big hedge fund firm Millennium sued by Jane Street for allegedly stealing strategy". Reuters.
  22. ↑ "Jane Street Strategy in Millennium Suit Involved India Trading, Hearing Reveals". Bloomberg.
  23. ↑ Parloff, Roger (August 12, 2021). "Portrait of a 29-year-old billionaire: Can Sam Bankman-Fried make his risky crypto business work?". Yahoo!Finance. Archived from the original on June 24, 2022. Retrieved September 6, 2021.
  24. ↑ De Vynck, Gerrit (2 January 2023). "Caroline Ellison wanted to make a difference. Now she's facing prison". Washington Post. Retrieved 4 January 2023.
  25. ↑ Wise, Aaron (2023-01-30). "How did so many Jane Street traders wind up at FTX?". Protos. Retrieved 2023-10-18.
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