What are they exactly? I don't understand what kind of shop they are, what kind of pay guys there get, how prestigious it is, etc...
There was a thread on them a couple months ago but I read it and still didn't know what they did.
Jane Street Capital Overview
Jane Street Capital is a proprietary trading firm in NYC. This means that they trade with the firm's internal assets. This is not technically a hedge fund.
Jane Street describes their business below:
On an average day, we trade over $13 billion in equities worldwide. We are also very active in the markets for options, futures, currencies, commodities, and fixed income. We are active participants on more than 200 electronic exchanges and other trading venues in about 40 countries around the world. We traded over $4.8 trillion across all products in 2016.
@Brady4MVP explained that:
In terms of the work, they use quantitative methods to take advantage of an arbitrage situation. To put in the simplest terms, this means they take advantage of a situation where the relationship between two instruments is out of sync, thereby providing an opportunity for arbitrage. Jane Street trades a wide variety of products, but if I'm not mistaken, their largest activity is on stock and index options.
Prop Trading Interview Experience
@Brady4MVP commented on the interview process:
It's very tough to get a job there. There are around five rounds of interviews, each one getting progressively harder. You will be tested on math, economics, probability and statistics. To put it simply, you have to be really sharp to land a job.
Before the interview I went through five(!) phone interviews before they invited me down, and I think they would have kept going except that I had an exploding offer coming up so I told them its final round or nothing... When they say 'we aren't looking for the right answer so much as how you think about a problem', they mean it. At the final round itself you are given 100 poker chips at the start of the day. Over the course of the next 4-6 hour long interviews (I only had four, but I think that's because I got cut after four - there were still people interviewing as I left) you have to use the chips to make bets on scenarios given to you. Some sources claim these scenarios can be as simple as 'make a market on the temperature in the room', I didn't get these questions and I'm guessing that they are reserved for internship interviews. I got much more difficult ones, that require a decent amount of math. You will need to use the trading terms to bet on the results you get.
@eecs explained their summer analyst interview experience:
Their 4th round interview for a SA gig (yes 4th round for a summer internship) was almost like a Math Olympiad. Game theory, FORMAL proofs and some conditional probability.
Jane Street Prestiege Level and Salary
Jane Street Capital is a well regarded prop trading firm on Wall Street.
For the summer analyst role: the Jane Street Salary is 125k prorated, or 25k for 10 weeks (as of 2014)
@trdr1 explained their perception of Jane Street:
JSC has a reputation for paying very well and having high retention rates. This is why kids who get BB offers take jane over them.
@Brady4MVP explained his perspective:
The training they give you may not be as comprehensive as what you would get at a BB trading floor. If you had the option, you should take GS, MS, ML trading or a top hedge fund over Jane Street, without a question.
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