High frequency trading (HFT) firms like to fly under the radar. The publication of Michael Lewis’ Flashboys last year and the increased amount of regulatory scrutiny around HFT hasn’t encouraged them to be any more open about their activities. Few are publicly-listed – although Virtu Financial is reviving its IPO ambitions, with the result that performance and pay remain something of an enigma.
And yet, HFT companies are hiring. They’re taking some of the best quants and traders from investment banks. Supposedly, they pay up to $150k in your first year and close to $290k after two years.
Is this the reality? HFT traders in Europe were hit by weak trading volumes and higher transaction fees, according to their latest accounts, and while many firms are still building their teams, these jobs can be outside of the major financial centres in relatively obscure locations like Zug in Switzerland or Kansas City.
Would you want to work for one? We’ve spoken to recruiters, looked at public vacancies and analysed the latest accounts of 15 key HFTs to give you an idea of career opportunities and pay prospects. Please note, this is not a ranking…
1. KCG
Who? The result of a 2013 merger between Knight Capital and Getco, KCG is one of the largest HFTs out there. The marriage has resulted in a reduction in workforce, and it has been under pressure to address investor performance concerns. Revenues in the fourth quarter were up slightly to $221m, from $213m for the same period in 2013, however. HQ is in Jersey City, New Jersey.
Hiring? Yes, but also firing. Headcount went from 1,400 in 2013 to 1,093 at the end of last year and shrank by 60 people in the fourth quarter alone. However, it has plenty of vacancies – 87 at the time of writing – across New York, Jersey, Chicago and London. The latter appears to have the more interesting opportunities for sales traders and quant traders, rather than tech and middle office jobs elsewhere.
Pay? The latest accounts for its European office suggest falling pay – an average of £266.1k ($408.7k) for 2013, rather than £302.4k ($464.6k) in 2012.
2. Sun Trading
Who? Tech-focused prop trading firm that includes HFT strategies among its trading activities. Has around 100 employees in the US across New York and Chicago and around 20 people in London.
Hiring? Not really. There are currently four vacancies, largely tech and middle office, and its London operation increased by just two people last year. However, headhunters suggest that it is recruiting traders in the City.
Pay? The latest available figures for its London operation, which relate to 2013, suggest an average payout of £265k ($407.2k) a head, but its highest paid director received £1.5m ($2.3m).
3. Jump Trading
Who? It has around 350 employees across its offices in Chicago (HQ), New York, London and Singapore. Likes to keep a low profile and rarely (if ever) ventures out into the public sphere, but was established 15 years ago and has been gradually becoming one of the biggest HFT players and top firms on the Chicago Mercantile Exchange. Last available accounts for the group are from 2010 when its revenues hit $512m.
Hiring? Yes. Currently has 42 vacancies globally, included an unspecified number of graduate recruits into its training programme in Singapore. Tech roles, but also quant developers, traders and researchers across London, New York, Chicago and Singapore.
Pay? Again, figures are only available for UK-based employees and relate to 2013. It paid an average of £550k ($845k).
4. Tower Research Capital
Who? Founded in 1998 by former Credit Suisse prop trader Mark Gorton, Tower Research Capital is a HFT firm comprised of engineers, physicists and computer science graduates and has around 300 employees worldwide, including within its European subsidiary Spire (Europe).
Hiring? Yes – plenty of opportunities for quant traders, graduates and IT professionals, predominantly in New York.
Pay? Spire Europe’s accounts suggest an average payment of £582k ($895k).
5. Tradebot Systems:
Who? Based in Kansas City and predominantly focused on US and Canadian stock markets, Tradebot was thrust into the headlines for being the only HFT named in the Barclays’ ‘dark pool’ saga. It accounts for 5% of total trading volumes in the US stock market and trades 5,000 companies each month, according to its website. There are only around 60 staff.
Hiring?: Says it has ‘immediate openings’ for traders, as well as Java, Python and C++ developers. Traders should also understand these coding languages and need a degree in either computer science, math, statistics or finance.
Pay: Base salary for traders is $50-100k, depending on experience. However, Tradebot is keen to emphasise that it’s the bonus pool where the “big money is to be made” and is dependent on trading profits. They also provide free lunch for their employees.
6. Virtu Financial
Who? We’re likely to know a lot more about what Virtu Financial does if it proceeds with its revived plans for an IPO. It delayed the IPO last year in the wake of the Flashboys controversy. Virtu closed its London office recently, and its European operations are run out of Dublin. Headquarters are in New York.
Hiring? Has built up its Irish operation, but currently only a few vacancies across all of its four offices in Austin, Texas, New York, Dublin and Singapore.
Pay? Pay for its Dublin staff averaged at €296k ($335.7k) in 2013.
7. XR Trading
Who? Chicago-based HFT shop predominantly focused on futures, but also covers other asset classes like FX, treasuries and cash.
Hiring? Started a London office in May 2014 and has been on the hunt for traders with an engineering, computer science, maths or physics background. Looking for entry-level and experienced traders in London, Chicago and Sydney.
Pay? No data.
8. DRW Trading:
Who? Big player in the HFT with around 500 employees globally. It’s based in Chicago, but has offices in London, Montreal and New York. It appears to be expanding inorganically – it acquired rival Chopper Trading earlier this year.
Hiring? Rumoured to be building up its London office, where it has around 40 staff and currently has a number of quant and trading positions open, predominantly in Chicago.
Pay? New accounts for 2014 performance in London suggest that £12.9m was shared between 36 staff. This means an average payment of £358.3k ($406.1k)
9. GSA Capital Partners:
Who? Straddles the divide between quant hedge fund and HFT firm, GSA has a trendy office overlooking London’s Green Park and employs around 45 people. It manages money for clients, and has around $2bn in assets under management.
Hiring? Headcount appears relatively flat for the past 12 months, but has an open request for applications on its website.
Pay? £115m ($176m) was shared between 22 partners in 2014, or an average payment of £5.2m ($7.9m). However, the highest paid member received £52.8m.
10. Maven Securities:
Who? A relatively new player, founded in 2011 by former Optiver and Tibra Capital traders that currently has just one office in London. Posted revenues of £19m last year with just 18 people working for it.
Hiring? Yes, relative to its size Maven is in the midst of a recruitment spree. It currently has four trader jobs and a couple of technology roles as well as six support function positions.
Pay? Its latest accounts suggest that it paid an average of £184.8k ($283.9k) in 2013.
11. Two Sigma International:
Who? A tech-driven HFT firm that claims to have been using Big Data in its trading strategies before it became fashionable. Founded in 2001 and currently headquarter in New York with offices in London, Houston and Hong Kong.
Hiring? Yes – currently has a huge 120 open positions, predominantly for technologists in New York but also across its trading functions. It also has a ‘general application’ position for modelling and trading, suggesting it’s open to CVs outside of its current openings.
Pay? In London (the only available figures), it paid six people £1.5m, or an average of £250k ($383.9k) each.
12. Allston Trading:
Who? Grandly proclaims to be “enriching lives” on its website, Allston was founded in 2002 by a trio of CME futures traders. It recently ceased trading on US stock markets to focus purely on more profitable derivatives markets. Has around 125 employees.
Hiring? Two years’ ago it announced plans to “pick up talented traders” as other firms shuttered shop. Increased regulatory scrutiny on HFTs generally, and its previously mentioned plans to pull out of regular stock markets, suggests this may no longer be such a big priority. Currently has just six vacancies, including one algo trading job.
Pay? No data.
13. IMC:
Who? Headquartered in the Netherlands and surely one of the oldest HFTs, having been founded in 1989. Has 450 employees across Amsterdam, Chicago, Sydney, New York, Hong Kong and Zug. If the video on its homepage of employees pondering complex mathematical equations in business casual clothing doesn’t tempt you to apply, nothing will…
Hiring? Yes. There are 26 jobs for quants, developers and traders within most of its global offices.
Pay? No verified data, but Glassdoor suggests junior traders bring in around $80k and options traders earn $95k. This is less than its development staff, with software engineers earning $107k. Perhaps it’s all in the bonus. Trading interns earn $6.2k a month.
14. Hudson River Trading:
Who? Another firm that claims to account for 5% of all stocks traded in the US. It has around 100 employees worldwide, 25 of which are algorithmic traders. The rest work on writing software and other middle and back office roles.
Hiring? Not really – eight positions globally.
Pay? No data.
15. Spot Trading
Who? Has around 100 employees across technology, equity research, quant and trading functions within its Chicago HQ. Claims to operate a meritocracy where all employees are rewarded for the performance of the firm, rather than compensated on individual performance.
Hiring? Sparse opportunities currently. The few roles it does have are predominantly in trading and equity research.
Pay? No data