Jane Street Capital

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]

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

History

Jane Street was co-founded by Tim Reynolds, Rob Granieri, Marc Gerstein, and Michael Jenkins.[5][6] Among its founders, 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]

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]

Notable employees

Both Sam Bankman-Fried[12] and Caroline Ellison[13] were once employed by the company.

Technology

Jane Street, as of 2014, uses the OCaml programming language.[14] It adopted OCaml as its main programming language early on because the language's functional programming style and clear expressiveness made it possible for code reviews to be performed by traders who were not programmers, to verify that high-performance code would do what it was intended to do. Jane Street has stated that "OCaml helps us to quickly adapt to changing market conditions, and go from prototypes to production systems with less effort".[14] Furthermore, OCaml's "rigor is like catnip to some people,... giving Jane Street an unusual advantage in the tight hiring market for programmers" that allows Jane Street to "lure a steady supply of high-quality candidates".[15] Jane Street also takes advantage of programmable hardware like FPGAs to implement some of the logic.[16]

Jane Street has released some open source code on GitHub that includes their versions of standard OCaml libraries.[17]

In July 2020, S&P Global Ratings affirmed Jane Street on capital growth. The rating agency noted that Jane Street is a "highly profitable trading business," that "the company has generated very strong earnings so far in 2020 and that its trading has benefited from the market volatility related to the COVID-19 pandemic."[18]

References
  1. "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. "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. Wigglesworth, Robin (28 January 2021). "Jane Street: the top Wall Street firm 'no one's heard of'". Financial Times. Retrieved 29 January 2021.
  6. "Jane Street's Reynolds Turns to Art With Trading Fortune". Bloomberg.com. 14 June 2019 – via www.bloomberg.com.
  7. "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".
  10. "Financial Times". 28 January 2021.
  11. "Jane Street, DRW Traders Made Billions as Virus Hit Markets". Bloomberg.com. 18 June 2021.
  12. 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.
  13. De Vynck, Gerrit (2 January 2023). "Caroline Ellison wanted to make a difference. Now she's facing prison". Washington Post. Retrieved 4 January 2023.
  14. "Companies using OCaml". OCaml.org. Retrieved 17 August 2014.
  15. James Somers (April 2, 2015). "Toolkits for the Mind". MIT Technology Review.
  16. "OCaml All the Way Down – How Jane Street Builds FPGA designs". Jane Street. 2018-04-18. Retrieved 2021-02-05.
  17. "Open Source @ Jane Street". Jane Street Capital. Retrieved August 1, 2014.
  18. "S&P affirms Jane Street Group on capital growth". www.spglobal.com. Retrieved 2020-09-01.
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