Jane Street Capital
IndustryFinancial services
FoundedAugust 31, 1999 (1999-08-31)[1]
Founders
  • Tim Reynolds
  • Rob Granieri
  • Marc Gerstein
  • Michael Jenkins
Headquarters250 Vesey Street, ,
U.S.
ProductsHigh-frequency trading, Market maker[2]
Number of employees
2,000+
ASN
  • 14969
Websitewww.janestreet.com

Jane Street Capital, typically referred to as Jane Street, is a global proprietary trading firm.[3] Jane Street Capital employs more than 2,000 people in five offices in New York, London, Hong Kong, Amsterdam, and Singapore. The firm trades a broad range of asset classes on more than 200 venues in 45 countries.[4]

The company is one of the largest market-makers, trading more than $17 trillion worth of securities in 2020. It was considered to have helped keep bond exchange-traded funds (ETFs) liquid during the market turmoil in 2020.[5]

History

Jane Street was co-founded by Tim Reynolds, Rob Granieri, Marc Gerstein, and Michael Jenkins.[5][6] Reynolds, Granieri, and Jenkins were formerly traders at Susquehanna International Group.[7]

Jane Street's website says the firm was founded in 2000.[3] However, Reynolds reports it to have been founded in 1999, and the date varies between sources.[1][6][8] According to Delaware state records, Jane Street Capital, LLC was incorporated in August of 1999.[9]

In 2012, Tim Reynolds stepped down from his position running the firm to focus on philanthropy.[7]

Activities

By 2018, Jane Street reportedly traded an average of $13 billion in global equities every day and handled 7 percent of ETF volume worldwide.[7]

The firm ended 2020 having traded $4 trillion in global equities, $1.4 trillion in bonds, and $3.9 trillion in ETFs.[10] 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.[11]

As of 2021, Jane Street’s 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, Jane Street was holding about $50bn of securities. In ETFs, it is an authorised participant[12] in 2,600 ETFs and lead market-maker on 506 ETFs, and plays an important role in maintaining ETF liquidity.[13]

Technology

Jane Street writes almost all of its software in the OCaml programming language.[14][13][15][16][17]

Leadership and culture

Jane Street 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.[13]

Notable past employees

References

  1. 1 2 "Jane Street Capital, LLC :: Delaware (US) :: OpenCorporates". opencorporates.com.
  2. Patterson, Scott; Rogow, Geoffrey (August 1, 2009). "What's Behind High-Frequency Trading". The Wall Street Journal.
  3. 1 2 "Our Story". Jane Street Capital. Archived from the original on August 31, 2017. Retrieved August 1, 2014.
  4. "What We Do :: Jane Street". www.janestreet.com. Retrieved 2018-08-08.
  5. 1 2 Wigglesworth, Robin (28 January 2021). "Jane Street: the top Wall Street firm 'no one's heard of'". Financial Times. Retrieved 29 January 2021.
  6. 1 2 "Jane Street's Reynolds Turns to Art With Trading Fortune". Bloomberg.com. 14 June 2019 via www.bloomberg.com.
  7. 1 2 3 "The Poker Aces Playing a Key Hand in the $5 Trillion ETF Market". 20 November 2018.
  8. "Jane Street Capital, LLC: Private Company Information". www.bloomberg.com.
  9. "Division of Corporations - Filing". icis.corp.delaware.gov.
  10. "Financial Times". 28 January 2021.
  11. "Jane Street, DRW Traders Made Billions as Virus Hit Markets". Bloomberg.com. 18 June 2021.
  12. Boyde, Emma (September 28, 2020). "What are authorised participants?".
  13. 1 2 3 Wigglesworth, Robin (January 28, 2021). "Jane Street: the top Wall Street firm 'no one's heard of'".
  14. "Automated Trading and OCaml with Yaron Minsky". Software Engineering Daily. November 9, 2015.
  15. "Technology :: Jane Street". Jane Street Capital. Retrieved 15 August 2023.
  16. "Jane and the Compiler". Jane Street Capital. Retrieved 15 August 2023.
  17. "Jane Street Open Source". Jane Street Capital. Retrieved 15 August 2023.
  18. 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.
  19. De Vynck, Gerrit (2 January 2023). "Caroline Ellison wanted to make a difference. Now she's facing prison". Washington Post. Retrieved 4 January 2023.
  20. Wise, Aaron (2023-01-30). "How did so many Jane Street traders wind up at FTX?". Protos. Retrieved 2023-10-18.
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