What is Jane Street?

Jane Street is a relatively new global quantitative trading firm established in 2000, also known as a market maker (liquidity provider).

With offices in New York, London, Hong Kong, Singapore, Amsterdam, and Chicago, the firm trades various asset classes (stocks, bonds, ETFs, options, etc.) on more than 200 exchanges across 45+ countries. Specializing in technology and collaborative problem-solving, Jane Street provides market liquidity using proprietary quantitative analysis and cutting-edge technology (particularly using the OCaml programming language).

In 2023, the company recorded $10.6 billion in net trading revenue and has over 2,600 employees. The firm emphasizes market risk management and continues to grow in the highly competitive trading environment.

Recent Performance (as of 2024)

• First 9 months of 2024 (January-September): Jane Street recorded $14.2 billion in net trading revenue. This already exceeds the full-year 2023 record ($10.6 billion), with the third quarter alone generating $5.8 billion, doubling the figure from the same period last year. This rapid growth is likely due to increased market volatility and trading volume.
• Full year 2023: Net trading revenue was $10.6 billion, with total trading revenue of $21.9 billion, a 34% increase year-over-year. Employee count was 2,631 by the end of 2023, generating approximately $4 million in net revenue per employee.
• Market environment: In 2024, expansion in ETF markets and options trading likely boosted revenue, particularly with increased market share in North American equity trading (10.4% in 2023).

Jane Street's Business Model

1. Market Making (Liquidity Provision)

   • Jane Street functions as a "market maker" in markets for stocks, ETFs, bonds, options, etc. This means they provide prices to both buyers and sellers, facilitating transactions and providing market liquidity.
   • They process high-speed, high-volume trades and generate profit by exploiting market inefficiencies and price differentials.

2. Quantitative Trading

   • They develop algorithms using mathematics, statistics, and computer science to analyze market data in real-time. This allows them to capture short-term price movements and arbitrage opportunities.
   • Their unique systems built with the OCaml programming language provide a competitive advantage that differentiates them from competitors.

3. Proprietary Trading

   • Rather than brokering client orders, they trade using their own capital. This means all revenue belongs to the company, and they manage all the risk themselves.
   • Risk management is extremely important, and their systems are designed to withstand sudden market changes.

Jane Street's revenue sources are based on spreads from market making and arbitrage trading using quantitative techniques, complemented by opportunistic earnings during market volatility and options strategies.

Their strength lies in fast, accurate technology and risk management, which supports their stable revenue growth. Recently, their presence in ETF and options markets has been particularly prominent, characterized by their ability to adapt to market conditions while diversifying revenue sources.

Similar companies with comparable business models include Citadel. Please check out our Citadel explanation article which covers market maker business models, differences between hedge funds and market makers, and what HFT (High-Frequency Trading) is!

Jane Street Job Opportunities

How to Get a Job Offer from Jane Street?

Difficulty Level and Desired Candidates

• Required Skills: Mathematics, programming, logical thinking. Financial knowledge is not mandatory, but eagerness to learn is highly valued.
• Positions: Mainly traders, software engineers, and quantitative researchers. Many join as full-time employees after internships.

Strategy and Steps

1. Develop Necessary Skills

   • Mathematics and Probability Theory: Thoroughly study probability, puzzles, and game theory. Jane Street interviews frequently feature brain teaser problems (e.g., expected value calculations and logic puzzles).
   • Programming: OCaml is used, but prior experience is not required. Solidify foundations in Python, C++, Java, etc., with essential understanding of algorithms and data structures.
   • Practice: Try writing simple trading algorithms yourself.

2. Build Academic Credentials and Experience

   • Education: Advantage for graduates from top universities (MIT, Stanford, University of Tokyo, etc.) with mathematics, CS, or physics majors. However, diverse backgrounds are also welcomed.
   • Internship Experience: Experience at other tech companies or financial institutions is a plus. Jane Street summer internships (highly paid, with reports of monthly salaries around 2 million yen) are good targets.
   • Self-Learning: Build achievements through Kaggle or hackathons.

3. Application Preparation

   • Resume: Emphasize technical skills and problem-solving achievements. Include GitHub or project examples.
   • Position Selection: For trader positions, highlight mathematical thinking; for engineering positions, showcase coding skills.
   • Application Timing: Internships in fall (September-October), full-time positions anytime. Check the official website for details.

4. Interview Preparation

   • Format: Phone interviews (1-2 rounds) + online/in-person (multiple rounds). Focus on technical interviews with coding and puzzle questions.
   • Sample Questions: "What is the probability of getting 6 heads in 10 coin tosses?" "How would you estimate the expected value of market prices?"
   • Tips: Explain your thought process out loud. Even if you make mistakes, clearly articulate your logic.
   • Mock Practice: Utilize Alpha Advisors' professional advisors for mock interviews and training courses.

5. Cultural Fit

   • Collaboration: Jane Street emphasizes teamwork. Prepare episodes demonstrating your cooperative nature for interviews.
   • Curiosity: Show passion for new problems. Example: "I analyzed market data on my own."
   • Simply being good at math or programming is not enough differentiation for securing an offer.

As described above, a background in tech or mathematics is essential. However, recently they have strengthened recruitment in Japan, Singapore, and Hong Kong, expanding opportunities for Asians to receive offers.

For this purpose, it's recommended to pursue a graduate degree in tech or financial engineering to obtain a master's degree. Since Jane Street is a global company requiring English proficiency, rather than attending Japanese graduate schools like the University of Tokyo or Tokyo Institute of Technology, it's recommended to pursue graduate studies abroad in the United States or Singapore.

To join Jane Street, the key is to sharpen your mathematical thinking and programming skills while developing your ability to explain logic during interviews. Starting with an internship and demonstrating cultural fit while building accomplishments will expand your opportunities.

Consult Alpha for Jane Street Job Offers!

Alpha Advisors provides comprehensive support for securing Jane Street offers, including interview preparation, entry sheet and resume guidance, coding practice, and financial knowledge preparation. Beyond just job hunting, we help build strategies around the question "What does it take to get a job offer from Jane Street?"

For example, we may recommend graduate studies in the United States, Singapore, or the United Kingdom to strengthen mathematics and programming skills. Financial engineering and computer science programs are particularly popular recently, and we provide thorough support for graduate school applications.

We have extensive success stories. Previous achievements include:

- Singapore Financial Engineering Master → Investment banking trader offer
- US Computer Science Master → Quantitative researcher offer
- US Finance Master → Hedge fund offer

Unlike typical admission consultants or job hunting agencies, Alpha provides consistent support from graduate school admission to job offers. Our advisors are experts from top companies and MBA programs, including Goldman Sachs alumni and Chicago Booth MBA holders.

To fulfill your dream of joining Jane Street, consult Alpha now!
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