Jane Street Capital
 | |
 Headquarters at 250 Vesey Street | |
| Company type | Private |
|---|---|
| Industry | Financial services |
| Founded | August 31, 1999[1] |
| Founders |
|
| Headquarters | 250 Vesey Street, , U.S. |
| Products | High-frequency trading, Market maker[2] |
Number of employees | 2,631[3] |
| ASN | |
| Website | www |
Jane Street Capital is a global proprietary trading firm.[4] It employs more than 2,600[5] people in six offices in New York, London, Hong Kong, Amsterdam, Chicago, and Singapore, and trades a broad range of asset classes on more than 200 venues in 45 countries.[6]
It is among the principal market-makers – in 2020 it traded more than $17 trillion worth of securities. It was considered to have helped keep bond exchange-traded funds (ETFs) liquid during the market turmoil in 2020.[7]
History
[edit]Jane Street was co-founded by Tim Reynolds, Rob Granieri, Marc Gerstein, and Michael Jenkins.[7][8] Reynolds, Granieri, and Jenkins were formerly traders at Susquehanna International Group.[9] It was started in either 1999[1][8][10][11] or 2000.[4]
In 2012, Tim Reynolds stepped down from his position running the firm.[9]
Activities
[edit]The firm ended 2020 having traded $4 trillion in global equities, $1.4 trillion in bonds, and $3.9 trillion in ETFs.[12] During the COVID-19 pandemic, the firm saw its revenue jump 54% to a record of $10.6 billion during the year ended in March 2021.[13]
As of 2021, its trading capital was about $15bn. As well as high-frequency trading, it in some cases maintained positions for hours, even days or sometimes weeks, which is essential for ETFs that track less-traded markets. On any given day, it was holding about $50bn of securities. It is an authorised participant[14] in 2,600 ETFs and lead market-maker on 506 ETFs, and plays an important role in maintaining ETF liquidity.[15]
In 2023, the company generated $10.6bn in net trading revenue with adjusted earnings of $7.4bn. It released these numbers as part of a debt deal which aimed to expand the amount of cash on Jane Street's balance sheet from $4.3bn to $5.6bn.[16]
Technology
[edit]Almost all of its software is written in the OCaml programming language.[17][15][18][19][20]
Leadership and culture
[edit]The company is informally led by a group of 30 or 40 senior executives.
The firm's culture includes a focus on the risks of improbable but catastrophic crashes. In addition to hedging at trading desk level, Jane Street at company level spends $50m-$75m a year on put options.[15]
Lawsuits
[edit]In April 2024, the firm brought a lawsuit against Millennium Management alleging that Millennium stole its trading strategy through engaging two of its former traders, Douglas Schadewald and Daniel Spottiswood.[21] The firm claimed the strategy, which traded options in NSE/BSE India, earned about $1 billion in 2023.[22]
Notable past employees
[edit]- Zvi Mowshowitz
- Sam Bankman-Fried[23] and Caroline Ellison,[24] recipients of misappropriated FTX customer funds, were once employed by the company.[25]
- Brett Harrison
- Renée DiResta
References
[edit]- ^ a b "Jane Street Capital, LLC :: Delaware (US) :: OpenCorporates". opencorporates.com.
- ^ Patterson, Scott; Rogow, Geoffrey (August 1, 2009). "What's Behind High-Frequency Trading". The Wall Street Journal.
- ^ "Jane Street Scores $10.6 Billion Trading Haul". Bloomberg.com. 17 April 2024.
- ^ a b "Our Story". Jane Street Capital. Archived from the original on August 31, 2017. Retrieved August 1, 2014.
- ^ "Who We Are :: Jane Street". www.janestreet.com. Retrieved 2024-05-22.
- ^ "What We Do :: Jane Street". www.janestreet.com. Retrieved 2018-08-08.
- ^ a b Wigglesworth, Robin (28 January 2021). "Jane Street: the top Wall Street firm 'no one's heard of'". Financial Times. Retrieved 29 January 2021.
- ^ a b "Jane Street's Reynolds Turns to Art With Trading Fortune". Bloomberg.com. 14 June 2019 – via www.bloomberg.com.
- ^ a b "The Poker Aces Playing a Key Hand in the $5 Trillion ETF Market". 20 November 2018.
- ^ "Jane Street Capital, LLC: Private Company Information". www.bloomberg.com.
- ^ "Division of Corporations - Filing". icis.corp.delaware.gov.
- ^ "Financial Times". 28 January 2021.
- ^ "Jane Street, DRW Traders Made Billions as Virus Hit Markets". Bloomberg.com. 18 June 2021.
- ^ Boyde, Emma (September 28, 2020). "What are authorised participants?".
- ^ a b c Wigglesworth, Robin (January 28, 2021). "Jane Street: the top Wall Street firm 'no one's heard of'".
- ^ "Jane Street Scores $10.6 Billion Trading Haul". Bloomberg.com. 17 April 2024.
- ^ "Automated Trading and OCaml with Yaron Minsky". Software Engineering Daily. November 9, 2015.
- ^ "Technology :: Jane Street". Jane Street Capital. Retrieved 15 August 2023.
- ^ "Jane and the Compiler". Jane Street Capital. Retrieved 15 August 2023.
- ^ "Jane Street Open Source". Jane Street Capital. Retrieved 15 August 2023.
- ^ "Big hedge fund firm Millennium sued by Jane Street for allegedly stealing strategy". Reuters.
- ^ "Jane Street Strategy in Millennium Suit Involved India Trading, Hearing Reveals". Bloomberg.
- ^ Parloff, Roger (August 12, 2021). "Portrait of a 29-year-old billionaire: Can Sam Bankman-Fried make his risky crypto business work?". Yahoo!Finance. Archived from the original on June 24, 2022. Retrieved September 6, 2021.
- ^ De Vynck, Gerrit (2 January 2023). "Caroline Ellison wanted to make a difference. Now she's facing prison". Washington Post. Retrieved 4 January 2023.
- ^ Wise, Aaron (2023-01-30). "How did so many Jane Street traders wind up at FTX?". Protos. Retrieved 2023-10-18.
