Hudson River Trading is an American quantitative trading firm headquartered in

New York City New York, often called New York City (NYC), is the most populous city in the United States, located at the southern tip of New York State on one of the world's largest natural harbors. The city comprises five boroughs, each coextensive w ...

and founded in 2002. In 2014, it accounted for about 5% of all trading in the United States. Hudson River Trading employs over 800 people in offices around the world, including New York, Chicago, Austin, Boulder, London, Singapore, Shanghai, Mumbai, and

Dublin Dublin is the capital and largest city of Republic of Ireland, Ireland. Situated on Dublin Bay at the mouth of the River Liffey, it is in the Provinces of Ireland, province of Leinster, and is bordered on the south by the Dublin Mountains, pa ...

. 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 The Futures Industry Association (FIA) is a prominent global trade organization that represents the interests of the futures, options, and derivatives markets, including futures commission merchants A commodity broker is a firm or an individua ...

(FIA).

Business

Trading

Hudson River Trading is a multi-asset class firm that trades across various time horizons. It differs from stereotypical

high-frequency trading High-frequency trading (HFT) is a type of algorithmic trading in finance characterized by high speeds, high turnover rates, and high order-to-trade ratios that leverages high-frequency financial data and electronic trading tools.Lin, Tom C. W. " ...

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 pool In finance, a dark pool (also black pool) is a private forum ( alternative trading system or ATS) for trading securities, derivatives, and other financial instruments.

Development

In January 2014, Hudson River Trading and three other quantitative trading firms formed the Modern Markets Initiative, a trade lobbying group. In August 2014,

Bart Chilton Bartholomew Hamilton Chilton (May 1, 1960 – April 27, 2019) was an American civil servant. He was Commissioner at the Commodity Futures Trading Commission (CFTC) from 2007 to 2014. In April 2014, he joined DLA Piper as a Senior Policy Advis ...

was added as an advisor to the group. On January 16, 2018, Hudson River Trading acquired its rival firm Sun Trading, a global market maker that traded on over 115 exchanges. In the first quarter of 2021, Bloomberg reported that Hudson River Trading reaped about $1.2 billion from trading, amid heightened market volatility.

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 ''The Wall Street Journal'' (''WSJ''), also referred to simply as the ''Journal,'' is an American newspaper based in New York City. The newspaper provides extensive coverage of news, especially business and finance. It operates on a subscriptio ...

'' article on financial firms' efforts to recruit programming talent away from

Silicon Valley Silicon Valley is a region in Northern California that is a global center for high technology and innovation. Located in the southern part of the San Francisco Bay Area, it corresponds roughly to the geographical area of the Santa Clara Valley ...

and his reasons for optimism about their ability to do so.

Government regulation

In March 2014,

New York Attorney General The attorney general of New York is the chief legal officer of the U.S. state of New York and head of the Department of Law of the state government. The office has existed in various forms since 1626, originally established under the Dutch c ...

Eric Schneiderman Eric Tradd Schneiderman (born December 31, 1954) is an American lawyer and politician who served as the 65th attorney general of New York from 2011 until his resignation in May 2018. Schneiderman, a member of the Democratic Party, spent ten year ...

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. Hudson River Trading's head of business development, Adam Nunes, defended the company's business practices in statements made to ''

Newsweek ''Newsweek'' is an American weekly news magazine based in New York City. Founded as a weekly print magazine in 1933, it was widely distributed during the 20th century and has had many notable editors-in-chief. It is currently co-owned by Dev P ...

'', noting that

Wall Street Wall Street is a street in the Financial District, Manhattan, Financial District of Lower Manhattan in New York City. It runs eight city blocks between Broadway (Manhattan), Broadway in the west and South Street (Manhattan), South Str ...

traders also had access to the feeds at the same price and many of them already made use of them. In July 2014, the

Securities and Exchange Commission The United States Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street crash of 1929. Its primary purpose is to enforce laws against market m ...

(SEC) in the United States launched a probe into ten top high-frequency trading firms, including Hudson River Trading.

References

External links

* {{official website, www.hudson-trading.com Trading companies of the United States Financial services companies established in 2002 Companies based in New York City Financial services companies based in New York City