Hudson River Trading LLC
TypePrivate
IndustryFinancial services
Founded2002 Edit this on Wikidata
Headquarters
New York City
,
U.S.
ProductsAlgorithmic trading[1]
Websitewww.hudsonrivertrading.com

Hudson River Trading is a quantitative trading firm headquartered in New York City and founded in 2002.[2][3] In 2014, it accounted for about 5% of all trading in the United States.[4] Hudson River Trading employs over 800 people in offices around the world, including New York, Chicago, Austin, Boulder, London, Singapore, Shanghai, Mumbai and Dublin.[5] The firm focuses on research and development of automated trading algorithms using mathematical techniques, and trades on over 100 markets worldwide.

The company is a member of the Principal Traders Group, an advisory group formed by the Futures Industry Association (FIA).[6]

History

On January 16, 2018, Hudson River Trading acquired its rival firm Sun Trading, a global market maker that traded on over 115 exchanges.[7]

In the first quarter of 2021, Bloomberg reported that Hudson River Trading reaped about $1.2 billion from trading, amid heightened market volatility.[8]

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.[4]

People

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.[9]

Scrutiny

In January 2014, Hudson River Trading and three other quantitative trading firms formed the Modern Markets Initiative, a trade lobbying group.[10] In August 2014, Bart Chilton was added as an advisor to the group.[11][12]

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.[13] 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.[14]

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.[15]

Media coverage

Hudson River Trading has been covered in the Wall Street Journal,[4][16][3][9] Financial Times,[17] and Newsweek.[14]

See also

References

  1. ↑ Patterson, Scott; Rogow, Geoffrey (August 1, 2009). "What's Behind High-Frequency Trading". The Wall Street Journal.
  2. ↑ "Hudson River Trading". Retrieved February 16, 2015.
  3. 1 2 Cave, Tim (November 20, 2013). "A Cheat Sheet on European High Frequency Trading Firms". Wall Street Journal. Retrieved February 16, 2015.
  4. 1 2 3 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.
  5. ↑ "Equity trader Hudson River picks Dublin for post-Brexit EU hub". Irish Times. October 15, 2018.
  6. ↑ "Membership". Retrieved November 9, 2023.
  7. ↑ "Hudson River Trading to buy rival HFT firm Sun Trading".
  8. ↑ "Prop Trader Hudson River Reaps $1 Billion in Frenzied Quarter".
  9. 1 2 Peterson, Kristina (January 18, 2011). "Battle for Tech Geeks: Street vs. Silicon Valley". Wall Street Journal. Retrieved February 16, 2015.
  10. ↑ Hope, Bradley; Patterson, Scott (January 5, 2014). "High-Speed Traders Form Trade Group to Press Case". Wall Street Journal. Retrieved February 16, 2015.
  11. ↑ Hope, Bradley (August 21, 2014). "Former Foe of Speed Traders Now a Consultant". Wall Street Journal. Retrieved February 16, 2015.
  12. ↑ "HFT 'cheetahs' get Chilton as an adviser". Financial Times. August 21, 2014. Retrieved February 16, 2015.
  13. ↑ 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.
  14. 1 2 Leah McGrath Goldman (May 30, 2014). "Is Wall Street Pulling a Fast One?". NewsWeek. Retrieved February 16, 2015.
  15. ↑ 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.
  16. ↑ Hope, Bradley (October 15, 2014). "A High-Speed Trader Looks to Slow Down Critics. Hudson River Trading Chief Says HFT Business Is Misunderstood". Wall Street Journal. Retrieved February 16, 2015.
  17. ↑ Stafford, Phillip; Massoudi, Arash (June 17, 2012). "High speed traders look to restructure". Financial Times. Retrieved February 16, 2015.
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