Hudson River Trading
{{Short description|Quantitative trading firm based in NYC}}
{{Infobox company
| name = Hudson River Trading LLC
| logo = File:HRT Primary Logo - Full Color.png
| type = Private
| industry = Financial services
| products = Algorithmic trading{{cite web |url=https://www.wsj.com/articles/SB124908601669298293 |title=What's Behind High-Frequency Trading |date=August 1, 2009 |first=Scott |last=Patterson |first2=Geoffrey |last2= Rogow |website=The Wall Street Journal}}
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| hq_location_city = New York City
| hq_location_country = U.S.
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| owner = Jason Carroll {{Cite web |url=https://files.brokercheck.finra.org/firm/firm_152144.pdf|title=BrockerCheck Report |access-date=Apr 22, 2024}}
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| website = {{URL|https://hudsonrivertrading.com}}
}}
Hudson River Trading is an American quantitative trading firm headquartered in New York City and founded in 2002.{{cite web|url=http://www.hudson-trading.com|title = Hudson River Trading|accessdate = February 16, 2015}}{{cite news|url=https://blogs.wsj.com/moneybeat/2013/11/20/cheat-sheet-on-european-high-frequency-trading-firms/|title = A Cheat Sheet on European High Frequency Trading Firms|last = Cave|first = Tim|date = November 20, 2013|accessdate = February 16, 2015|newspaper = Wall Street Journal}} In 2014, it accounted for about 5% of all trading in the United States.{{cite news|url=https://blogs.wsj.com/moneybeat/2014/10/15/inside-hudson-river-the-firm-that-does-5-of-all-stock-trading/|title = 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|last = Hope|first = Bradley|date = October 15, 2014|accessdate = February 16, 2015|newspaper = Wall Street Journal}} Hudson River Trading employs over 800 people in offices around the world, including New York, Chicago, Austin, Boulder, London, Singapore, Shanghai, Mumbai, and Dublin.{{cite news|url=https://www.irishtimes.com/business/financial-services/equity-trader-hudson-river-picks-dublin-for-post-brexit-eu-hub-1.3663951|title = Equity trader Hudson River picks Dublin for post-Brexit EU hub|date = October 15, 2018|last =|first =|newspaper = Irish Times}} 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).{{Cite web |url=https://www.fia.org/ptg/articles/membership |title=Membership |access-date=November 9, 2023}}
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.
= Development =
In January 2014, Hudson River Trading and three other quantitative trading firms formed the Modern Markets Initiative, a trade lobbying group.{{cite news |last=Hope |first=Bradley |last2=Patterson |first2=Scott |date=January 5, 2014 |title=High-Speed Traders Form Trade Group to Press Case |url=https://www.wsj.com/articles/SB10001424052702304887104579302681366721324 |accessdate=February 16, 2015 |newspaper=Wall Street Journal}} In August 2014, Bart Chilton was added as an advisor to the group.{{cite news |last=Hope |first=Bradley |date=August 21, 2014 |title=Former Foe of Speed Traders Now a Consultant |url=https://blogs.wsj.com/moneybeat/2014/08/21/former-foe-of-speed-traders-now-a-consultant/ |accessdate=February 16, 2015 |newspaper=Wall Street Journal}}{{cite news |date=August 21, 2014 |title=HFT 'cheetahs' get Chilton as an adviser |url=http://www.ft.com/fastft/197291/post-197291 |accessdate=February 16, 2015 |newspaper=Financial Times}}
On January 16, 2018, Hudson River Trading acquired its rival firm Sun Trading, a global market maker that traded on over 115 exchanges.{{cite web |title=Hudson River Trading to buy rival HFT firm Sun Trading |url=https://www.reuters.com/article/us-sunholdingsllc-m-a-hudsonrivertrading/hudson-river-trading-to-buy-rival-hft-firm-sun-trading-idUSKBN1F52BV}}
In the first quarter of 2021, Bloomberg reported that Hudson River Trading reaped about $1.2 billion from trading, amid heightened market volatility.{{cite web |title=Prop Trader Hudson River Reaps $1 Billion in Frenzied Quarter |url=https://www.bloomberg.com/news/articles/2021-06-24/prop-trader-hudson-river-reaps-1-billion-in-frenzied-quarter}}
= 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.{{cite news|url=https://www.wsj.com/articles/SB10001424052748704637704576082512439373244|title = Battle for Tech Geeks: Street vs. Silicon Valley|last = Peterson|first = Kristina|date = January 18, 2011|accessdate = February 16, 2015|newspaper = Wall Street Journal}}
= 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.{{cite news|url=https://www.wsj.com/articles/SB10001424052702303563304579446941632615488|title = N.Y. Probes Alleged Advantages Given to High-Speed Traders. Probe Centers on High-Speed Traders Getting Early Access to Data Feed|last = Johnson|first = Andrew R.|date = March 18, 2014|accessdate = February 16, 2015|newspaper = Wall Street Journal}} 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.{{cite magazine|url=http://www.newsweek.com/2014/05/30/wall-street-pulling-fast-one-251784.html|title = Is Wall Street Pulling a Fast One?|author = Leah McGrath Goldman|date = May 30, 2014|accessdate = February 16, 2015|magazine = NewsWeek}}
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.{{cite web|url=https://finance.yahoo.com/news/exclusive-sec-targets-10-firms-high-frequency-trading-211141196--sector.html|title = Exclusive: SEC targets 10 firms in high frequency trading probe - SEC document|last = McCrank|first = John|publisher = Reuters and Yahoo! Finance|date = July 17, 2014|accessdate = February 16, 2015}}
See also
References
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