While banks continue to suffer, high-frequency trading firms are experiencing growth. What does this mean for the future of Wall Street?
According to eFinancialNews.com (registration required to view article), HFTs and other proprietary houses are "continuing to ramp up their activity on European exchanges, as they resist the tough trading conditions and regulatory headwinds facing the broader financial industry."
How are they pulling this off? Markets all over Europe, from Spain to England, are seeing a proliferation of high-frequency trading firms. eFinancialNews said that the benefit of HFTs is that they use their own capital and advanced computer algorithms to trade in and out of markets in a "fraction of a second." Quantitative statistical arbitrage techniques and market-making activities are among the strategies these firms use.
"Being able to trade fast, or low latency, is crucial to all these strategies," eFinancialNews said.
Kenneth Griffin, the owner of Citadel Securities (the biggest high-frequency trading firm on the Nordic markets), told eFinancialNews that the firm's talent database "contains over 150,000 resumes, of which approximately 25,000 were added in the past twelve months."
"We strongly believe that the hiring decisions we make today will drive our performance for years to come," he said.
StreetID believes that HFTs will continue to increase the market share of trading volumes and bring in above-average returns for their investors. The drastically reduced cost of electronic trading has made a huge variety of new and different arbitrage strategies feasible. Quant funds – such D.E. Shaw & Co., Renaissance Technologies from Jim Simons, and Two Sigma Investments from David Siegel and John Overdeck – are the reasons why the high frequency hedge fund category continues to be one of the most profitable on Wall Street. We feel that quants and HFTs have the safest jobs on Wall Street right now.
But don't just sit around and wait for the media to tell you when the hiring spree has begun. Sign up for StreetID – a financial career matchmaking site with a growing community of financial professionals – right now! With StreetID, current job seekers and those looking to move on in the future can sign up for a free account and make a direct connection with relevant candidates and employers.
According to eFinancialNews.com (registration required to view article), HFTs and other proprietary houses are "continuing to ramp up their activity on European exchanges, as they resist the tough trading conditions and regulatory headwinds facing the broader financial industry."
How are they pulling this off? Markets all over Europe, from Spain to England, are seeing a proliferation of high-frequency trading firms. eFinancialNews said that the benefit of HFTs is that they use their own capital and advanced computer algorithms to trade in and out of markets in a "fraction of a second." Quantitative statistical arbitrage techniques and market-making activities are among the strategies these firms use.
"Being able to trade fast, or low latency, is crucial to all these strategies," eFinancialNews said.
Kenneth Griffin, the owner of Citadel Securities (the biggest high-frequency trading firm on the Nordic markets), told eFinancialNews that the firm's talent database "contains over 150,000 resumes, of which approximately 25,000 were added in the past twelve months."
"We strongly believe that the hiring decisions we make today will drive our performance for years to come," he said.
StreetID believes that HFTs will continue to increase the market share of trading volumes and bring in above-average returns for their investors. The drastically reduced cost of electronic trading has made a huge variety of new and different arbitrage strategies feasible. Quant funds – such D.E. Shaw & Co., Renaissance Technologies from Jim Simons, and Two Sigma Investments from David Siegel and John Overdeck – are the reasons why the high frequency hedge fund category continues to be one of the most profitable on Wall Street. We feel that quants and HFTs have the safest jobs on Wall Street right now.
But don't just sit around and wait for the media to tell you when the hiring spree has begun. Sign up for StreetID – a financial career matchmaking site with a growing community of financial professionals – right now! With StreetID, current job seekers and those looking to move on in the future can sign up for a free account and make a direct connection with relevant candidates and employers.