Hudson River Trading: A Key Player in Automated Stock Trading
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Hudson River Trading: A Key Player in Automated Stock Trading
- Hudson River Trading (HRT), a quantitative trading firm, accounted for over 15% of all daily equities trading in the United States as of 2021.
- Founded in 2002 by Jason Carroll, Alex Morcos, and Suhas Daftuar, HRT focuses on developing automated trading algorithms.
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Hudson River Trading (HRT), a prominent quantitative trading firm, has become a significant force in global financial markets since its inception in 2002. Headquartered in New York City, the firm specializes in the research and development of automated trading algorithms, utilizing advanced mathematical and statistical techniques. This approach allows HRT to trade across a wide range of financial products, including equities, futures, options, currencies, and cryptocurrencies, on over 200 electronic markets worldwide.
As of 2021, HRT was responsible for more than 15% of all daily equities trading in the United States, a testament to its substantial market presence. The firm has also shown significant financial growth, with Bloomberg reporting in May 2026 that HRT generated a record $6.4 billion in trading revenue in the first quarter of that year. In the third quarter of 2025, HRT’s net trading revenue reached $3.7 billion, an 81% year-over-year increase. The firm’s net capital stood at $2.5 billion at the end of 2024.
HRT’s operational model differentiates it from some other high-frequency trading firms. For instance, it holds approximately 25% of its trading capital overnight, unlike many firms that flatten all positions by the market close. The firm also engages in mid-frequency trading strategies, holding some positions for days or weeks in addition to sub-second trades. In 2018, HRT expanded its operations by acquiring rival firm Sun Trading, further solidifying its position as a global market maker.
The company employs over 1,000 people across 14 offices globally, including major financial hubs like London, Singapore, and Dublin. HRT actively recruits mathematicians, computer scientists, and engineers to continuously develop and refine its trading strategies, investing significantly in artificial intelligence. The firm reportedly spent $1 billion annually on artificial intelligence in 2025 and 2026.