The other side of your trade - Jane Street

I've been seeing a lot of people posting takes on markets lately with elevated vol making everyone a "savant". Here are some numbers from one of the best MMs... I thought you apes would enjoy this


Q2:

"Jane St reported nearly 800% jump in EBITDA Q2 2020. Up 600% in trading revenues"

  • Generated nearly $2.3 billion in EBITDA Q2 vs $259 million same time last year

  • Net trading revenues nearly $3.1 billion vs $455 million same time last year 


Q1:

"Following an eye-brow raising first quarter with a 1,344% increase in EDBITA and 964% increase in trading revenues"

  • $3.957 billion Q1 2020 vs $294 million Q1 2019 EBITDA

  • $5.275 billion Q1 2020 vs $547 million Q1 2019 Trading Revenues


(source: Debtwire)


An important note when you see everyone and their mother trading "hot stocks". Also an important note to young grads who want to work at companies like Jane Street. There's a reason why it's hard.

 
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Jane Street is the cream of the crop x2. Even compared to other top tier shops like Citadel/HRT/5 Rings, JS is much more difficult to get in. They have 5 rounds of interview and their questions dwarf questions from places like SIG in terms of difficulty.

In college, there were 3 of us math kids who interviewed with Jane Street including myself. 2 other ones were a lot smarter than I am. I got cut at round 2 (but trading really wasn't for me so maybe it's a good thing). 1 friend got cut at 3rd round but now works at Citadel/5 rings/Optiver/DRW. Another actually got an offer. Needless to say, that one kid who made it to JS had the highest Putnam score among us. I had the lowest at 10+. 

JS is truly for the smartest of the smartest of the smartest. Comp is crazy as well. If you don't screw up you can make 7 figures in 3 years (or I hear so).

 

Honestly had never looked into the firm till reading this and Tim Reynolds by all accounts seems like a pretty awesome dude. Makes me wish I'd been gifted with the quick maths.

"The obedient always think of themselves as virtuous rather than cowardly" - Robert A. Wilson | "If you don't have any enemies in life you have never stood up for anything" - Winston Churchill | "It's a testament to the sheer belligerence of the profession that people would rather argue about the 'risk-adjusted returns' of using inferior tooth cleaning methods." - kellycriterion
 

vanilla_twilight_options

Sounds like a STEM-heavy school. You did not go to MIT. Where did you go to school? Caltech/GT/CMU?

Princeton is a higher target for JS and also quant heavy . 

 

Tbh, most top tier shops are willing to pay you this much your first year. 300~400K is including the sign-on bonus. Afterwards, you're making 200~250K a year for a while until you become a senior trader with crazy PnL, move up to mgmt, or become a PM. 

But of course, at JS even a regular trader could make 7 figures in 3 years or so if you don't screw up. JS doesn't hire kids who are going to screw up. When they hire, they are keeping you. SIG has the opposite strategy, hire lots of kids 1/3 drops out in 2 years.

Yeah my friends tell me lots of stuff. Happens when you're around bunch of mathy kids. All we do is structure the hell out of every conversation.

 

I think these numbers are high for a lot of positions.  One of our guys who moved to a marketing/sales type role there after coming to us from the internal desk didn't seem to be making anywhere near that much.  Granted, he was just slogging to re-take level 2 of the CFA exam when they hired him, but that sounds high, and we are in the most desired part of the AM industry.

The only difference between Asset Management and Investment Research is assets. I generally see somebody I know on TV on Bloomberg/CNBC etc. once or twice a week. This sounds cool, until I remind myself that I see somebody I know on ESPN five days a week.
 

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