Hudson River Trading (HRT) is a

quantitative trading Mathematical finance, also known as quantitative finance and financial mathematics, is a field of applied mathematics, concerned with mathematical modeling of financial markets. In general, there exist two separate branches of finance that require ...

firm headquartered in

New York City New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...

and founded in 2002. In 2014, it accounted for about 5% of all trading in the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...

Trading

Although HRT is often classified as engaging in

high-frequency trading High-frequency trading (HFT) is a type of algorithmic financial trading characterized by high speeds, high turnover rates, and high order-to-trade ratios that leverages high-frequency financial data and electronic trading tools. While there is no ...

(HFT), it claims to differ from stereotypical HFT firms in several important ways: it holds about 25% of its trading capital overnight (unlike most HFT firms that hold almost nothing overnight), its average holding time is about five minutes as opposed to the sub-second times observed for some HFT 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.Wall Street Journal ''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...

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

Silicon Valley Silicon Valley is a region in Northern California that serves as 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 areas San Mateo County ...

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

Scrutiny

In January 2014, HRT 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. 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 been in existence in some form since 1626, under the Dutch colonial government of ...

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 HRT, getting early access to raw stock market feeds at an annual price of $180,000. HRT head of business development Adam Nunes defended the company's business practices in statements made to ''

Newsweek ''Newsweek'' is an American weekly online news magazine co-owned 50 percent each by Dev Pragad, its president and CEO, and Johnathan Davis (businessman), Johnathan Davis, who has no operational role at ''Newsweek''. Founded as a weekly print m ...

'', noting that

Wall Street Wall Street is an eight-block-long street in the Financial District of Lower Manhattan in New York City. It runs between Broadway in the west to South Street and the East River in the east. The term "Wall Street" has become a metonym for t ...

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 U.S. 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. The primary purpose of the SEC is to enforce the law against market ...

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

Media coverage

Hudson River Trading has been covered in the ''

Wall Street Journal ''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...

'', ''

Financial Times The ''Financial Times'' (''FT'') is a British daily newspaper printed in broadsheet and published digitally that focuses on business and economic current affairs. Based in London, England, the paper is owned by a Japanese holding company, Nik ...

'', and ''

''.

References

External links

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

Trading

Scrutiny

Media coverage

See also

References

External links