Despite the recent scrutiny, the world of high frequency trading (HFT) remains something of an enigma. Even big firms fly under the radar and while rumours abound about traders being scooped up from investment banks and hedge funds – and large pay packets – little data is really available.
Through conversations with specialist recruiters, looking at the careers centres of major HFT firms and analysing the available financial data, we’re able to give you an idea of the jobs and pay on offer currently. Please note, this is not a ranking…
1. KCG
Who?: A relative giant in the HFT world, KCG employs around 1,045 people globally and was formed through the merger of Getco and Knight Capital in 2013, a move which has allegedly caused ‘simmering tensions’ among employees. For the first half of 2015, trading revenues were $379.5m, a reduction of 18%.
Hiring?: Headcount has been heading down over the past few years. It now has 1,045 people, down from 1,400 in 2013. In London, however, headcount increased from 127 people in 2013 to 152 employees last year. It currently has 56 jobs, entirely in the U.S across Chicago, Jersey, New York and San Jose, but these are primarily in tech and quant development.
Pay?: On a pay per head basis, compensation has been heading down at KCG. In 2013, its European arm paid an average of $492.9k, a figure that shrunk to $392.7k last year (the latest available figures). Across the group, so far this year it’s accumulated $206.6k per head.
2. Sun Trading
Who?: Tech-focused prop trading firm that includes HFT among its trading strategies. It has around 100 employees in the US across New York and Chicago and around 20 people in London.
Hiring?: Not really. Just four roles globally, one for a quantitative trader in Chicago, and two software development roles in London and Chicago.
Pay?: On a per head basis, it paid its staff in London $383k in 2014, which are the latest available figures.
4. 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.
Hiring?: Yes, it currently has around 50 jobs, for traders, quant researchers and technologists across all its offices.
Pay?: This is only available for its European operation, where profits increased from $6m in 2013 to $24.8m last year. It has 47 employees in London (up from 32 in 2013) and paid them an average of $1.3m last year.
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. It’s European arm increased headcount by 73% last year, although admittedly it still only has 59 employees. There are still plenty of opportunities globally across quantitative trading, risk management and technology, as well as its graduate programme.
Pay: The only available figures are for its European arm, where pay averaged out at £452.5k ($698.2k).
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? Tradebot has a general opening for ‘equity traders’ on its site, which also requires a computer science, maths, statistics or finance degree and asks for familiarity with coding languages like Python, C++ or Java. It’s also hiring for developers.
Pay? It pays traders $50-100k as a base salary, depending on experience, but points out that the ‘big money’ is made through its annual bonus scheme. This is, of course, connected to personal performance.
6. Virtu Financial
Who? One of the few HFTs to go public (in April 2015), Virtu Financial has around 150 employees globally – as of June 2015 – and has offices in New York, Dublin, Singapore and Austin, Texas. Despite the IPO, it remains a relatively secretive organisation and admits it doesn’t “maintain a large public presence”.
Hiring?: Not hugely. It has a handful of roles in its Dublin office – largely support and technology – and tech roles in New York. The majority of jobs (six) are in Austin, but again these are primarily for software engineers.
Pay?: In the first six months of 2015, it accrued $42m in compensation costs, averaging out at $281.8k. Assuming a similar cost for the remainder of the year, this would equate to an average payment of $563.7k.
7. XR Trading
Who?: A Chicago-based HFT that has trading teams focused on seven asset classes including agricultural products, equities, FX and metals. Has offices in London, Chicago and Sydney.
Hiring?: Yes, it has a number of roles for experienced traders across its locations are well open roles for quants and software engineers. It’s also hiring for entry-level trading roles.
Pay?: The only available figures are for its London operation, which has just four listed employees. It paid them an average of $290k in 2014, the latest available figures.
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, New York, San Francisco and Singapore.
Hiring?: Yes. It has 42 open roles globally – 13 in trading, 22 in tech and 14 for new graduate recruits.
Pay?: New accounts for 2014 suggest that its 36 London employees shared £12.9m, or an average payout of £358.3k ($554.8k)
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?: It has added two new partners throughout 2014, according to the latest accounts, and has an open call for interested parties on its careers page, but no advertised vacancies. It’s headcount across the group increased from 83 in 2013, to 101 last year.
Pay?: Its 22 partners earned an average of £2.4m ($3.7m) in 2014, but across the group its employees were paid an average of £127.2k ($197.7k)
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.
Hiring?: Relative to its size, very much so. It’s hiring for graduate traders and six more experienced trading jobs. It’s also hiring for software development and support positions.
Pay: It has ten employees listed on its UK operation accounts, which were paid £1.2m, or £120k ($185k) average per head.
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 headquartered in New York with offices in London, Houston and Hong Kong. Uber-trendy – it even has its own music recording studio for its employees and throws parties that it calls fiestas.
Hiring?: Very much so. It currently has 116 roles globally across portfolio management, trading, tech and support.
Pay?: Again, the only figures are for its London operation, where pay averaged out at £275k ($417k). Reports suggest that ‘math nerds’ in the U.S. start on $550k at Two Sigma, however.
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?: Not really. Has a couple of open trading roles and three software development positions along with an internship opportunity.
Pay?: No data
13. IMC
Who?: Headquartered in the Netherlands and surely one of the oldest HFTs, having been founded in 1989. It has 400 employees across Amsterdam, Chicago, Sydney, New York, Hong Kong and Zug.
Hiring?: To an extent. It has 24 jobs across its six offices, but these are at least primarily related to its trading and quantitative development divisions. There are also intern and graduate opportunities. IMC says in its latest annual report that 25 years ago it only employed traders. Now, they’re outnumbered by technologists.
Pay?: No official figures, but Glassdoor suggests that junior traders bring in $80k and options traders earn $95k. Trading interns earn $6.2k a month. Software engineers supposedly earn $107k. Perhaps it’s all in the bonus.
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?: Somewhat. It has around 11 jobs globally, including graduate roles.
Pay?: Its London operation paid out an average of £330k ($508k) last year.
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?: It’s currently in the midst of a graduate recruitment programme and has five roles open across trading and tech, so not a huge amount of hiring.
Pay?: No data
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