It’s a difficult time for global markets as many investors eye the upcoming Fed meeting. It’s expected that U.S. interest rates will be cut at the next meeting, which could signal an improvement in stock markets across the world. With the end of the year in sight, market makers like Hudson River Trading or HRT will be looking to break records in 2025.
In September we highlighted HRT’s second quarter results. The net trading revenue was more than double that of the second quarter of 2024. The third quarter results were even better. HRT hit a record $3.7 billion in net trading revenue, up 81 percent from the same period in 2024.
The significance of this result for HRT is highlighted when compared to the results of Citadel Securities or Jane Street. According to a story from Bloomberg, Citadel Securities made $2.64 billion of net trading revenue in the third quarter of 2025. Jane Street did better with a total of $6.83 billion in revenue, up from $5.79 billion a year earlier. The scale of growth that HRT is experiencing puts it far and above the competition in terms of year-on-year incremental growth.
How Much Has Hudson River Trading Grown Compared to 2024?
HRT has had a remarkable year so far. As highlighted above, the firm beat third quarter of 2024 results by 81 percent. When it comes to the second quarter of 2025, the results were even more impressive. The results were 103 percent more than that of quarter two 2024.
In 2025 HRT has already hit more than $9 billion in revenue. Bearing in mind that this is what the firm posted for 2024, it should be more in 2025. Meanwhile the Delaware-based company will be 24 years old in February 2026.
Who is Hudson River Trading’s Head of Artificial Intelligence?
A quick glimpse at the r/quant thread on Reddit shows that some market participants see that HRT’s bet on AI has paid off. One pointed out how Iain Dunning’s appointment as Head of Artificial Intelligence at HRT in 2018 may have been a contributing factor to the firm’s success. Dunning joined from Alphabet’s DeepMind in the summer of 2018. He has been recruiting ‘heavily’ to augment the already strong team at HRT.
With over 7,400 followers and blue verification on X, Dunning’s feed blends sharp professional insights into AI’s role in finance. Demystifying its “mystique” beyond LLMs with a reflective, historically minded commentary on markets, tech optimism, and societal cycles.
Dunning’s timeline reveals a witty, contrarian thinker who draws parallels between today’s AI boom and 1920s exuberance. He quotes Yale economist Irving Fisher on “permanent prosperity” while eyeing crypto leverage risks.
Dunning works with a budget of approximately $1 billion per year that HRT spends on artificial intelligence.
Who is Hudson River Trading Hiring Today?
A recent hire in June 2025 is Brannon Batson who is one of many who has joined HRT from D.E. Shaw. Batson was a key member of the team which developed all three generations of Anton, which is a bespoke biotech supercomputer powered by ASIC chips.
Another hire, confirmed by Bloomberg, is Harsh Padia who joined from smaller rival HAP Trading. A financial veteran, Padia was fined for options manipulation in 2014. Today Padia joins HRT with deep knowledge of the options market that HRT is hoping to leverage. This follows the firm’s success in equity wholesale trading that has been growing as a division since 2023. Citadel Securities is already an established player in the options market, Jane Street launched options wholesaling in 2024.
Future hires could come from the “Thiel Fellowship in 2024”, a group of 20 young innovators building in AI, crypto, robotics, and more.
What’s Driving Hudson River Trading’s Success?
At the heart of HRT’s meteoric rise is a deliberate shift away from the traditional high-frequency trading (HFT) arms race focused on nanosecond latencies. Instead, the firm has embraced a “slow down to speed up” philosophy, prioritizing AI-driven mid-frequency strategies that leverage statistical inference and predictive modeling. This pivot, spearheaded by leaders like Dunning, has allowed HRT to capitalize on volatile markets in 2025, from equity rallies to crypto swings and options explosions.
The firm’s Prism unit, which focuses on AI and machine learning applications, has been instrumental. With access to vast datasets and custom hardware, like the ASIC-powered systems Batson helped develop at D.E. Shaw, HRT is building “emergent edges” that go beyond simple arbitrage. This has translated into peer-leading profit margins of around 59% in Q3, far outpacing the industry average.
HRT’s expansion into new asset classes and geographies is fueling growth. The equity wholesale division, now handling 10.4 billion shares quarterly with $62.8 million in price improvements for retail investors, has become a cash cow since its ramp-up in 2023. Options wholesaling, bolstered by hires like Padia, positions HRT to challenge Citadel’s dominance in that space. Globally, offices in London, Singapore, and Ireland are scaling operations, with regulatory compliance ensuring smooth entry into markets like the EU under MiFID II.
What Challenges Lie Ahead for HRT?
Despite the records, HRT isn’t immune to headwinds. The firm’s heavy AI investments, $1 billion annually, carry risks if volatility normalizes in 2026. Potentially squeezing margins as “good vol” dries up. Regulatory scrutiny remains a wildcard; past HFT controversies (e.g., the “Flash Boys” era) could resurface amid probes into market-making practices. Talent wars are intensifying too, with rivals like Jane Street and Citadel poaching quants amid sky-high comp packages (HRT’s revenue per employee hits $8–10 million, but retention is key).
Geopolitical factors, such as U.S.-China trade tensions or Fed policy shifts, could also impact global flows. Yet, HRT’s flat, coder-led structure, free of bloated hierarchies, gives it agility. Future hires from talent pools like the Thiel Fellowship could inject fresh innovation, though none from the 2024 class have joined yet.
Looking Ahead: HRT’s Path to Dominance
As HRT approaches its 24th anniversary in February 2026, the firm is on track to shatter its 2024 full-year revenue of $8 billion, potentially closing 2025 north of $12 billion if quarter four mirrors the year’s momentum. CEO Oaz Nir’s vision of a “prediction game” over pure speed is paying dividends, positioning HRT not just as a market maker, but as a quant powerhouse reshaping Wall Street.
In a year where global markets teeter on Fed decisions, HRT’s blend of AI smarts, strategic hires, and operational efficiency proves that in trading, brains beat brute force every time.
Author: Andy Samu
#Quants #HRT #Citadel #JaneStreet #ArtificialIntelligence #Options #Equities #Talent #QuantTrading #HudsonRiverTrading
See Also:
How Jane Street’s Tech-Driven Market-Making is Reshaping Wall Street | Disruption Banking
