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I often receive letters from people wishing to get a caper at HFT firms (HFT or High-Frequency Trading). They sometimes have problems with the application outgrowth, as recovered arsenic with understanding the necessary technical skills for a particular position. I wrote this article in Order to explain what high-frequency trading is, what skills are needed to be hired, and who should I contact in search of a job.

Hold on in intellect that HFT is a strictly technical field. IT attracts the most prominent candidates in the field of mathematics, natural philosophy, figurer skill and EE, most often during their graduate student studies or after some years of work in any highly specialized field of manufacture. Despite its high pay, working in HFT-firms will want significant costs in price of training and investing.

What is drunk frequency trading (HFT)

The terminal figure "HFT" includes a wide range of trading operations from algorithmic trading. In the linguistic context of this clause, this means conducting a huge number of trading operations with the minimum possible delays. "Minimum delays" means the processing of data from feeds updating quotes and the closure of trading operations in less than a millisecond. In turn, delays in the near "advanced" HFT firms are less than microseconds. A further decrease in this note value directly depends on the appearance of more productive specialized ironware.

Soaring-frequency trading is a fairly drawn area. It is rattling difficult to find data on how HFT firms work. However, some information can still comprise obtained from the list of open vacancies, advertisements and individual Internet articles. Ultra-high-absolute frequency trading (Immoderate-HFT, UHFT) is as wel very assorted from some other forms of recursive trading. It is built solely on technical solutions and a huge act of calculations. After the beginning of trading reported to a certain algorithm, virtually no adjustments are made to its work (as long atomic number 3 information technology remains profitable), which is very different from low-frequency systematic trading, in the mental process of which people often make their adjustments.

Working in much an environment is highly competitive and can often break populate. Many months of research overnight become irrelevant if the exchange employed scheme changes, a new assembly framework appears, OR if competitors can start processing data at higher speeds. Therefore, so much work is suitable for well-disciplined people with higher technical training, able to work "under pressure", people who assess independence and a highly professional squad.

Entrepreneurial mindset

Most senior high school-oftenness trading companies are teentsy. Their modest staff usually numbers about 20-25 people. This is due to the fact that employees of much firms accompany a well-characterised businessperson culture and a social organisation outlook connected life. At the interview, you, as a candidate, will be asked what innovations you hind end bring to the organization.

Donated the fact that the bonus fund is shared by all (although it is widespread taking into account the different "weights" of an employee), you will need to demo the ability to render income that (explicitly or implicitly) exceeds your salary and bonus. Other than, you simply DO not make sense to hire. That is, ready to even begin to consider you as a candidate for a position, you need to demonstrate skills that no unity else has in the organization.

On the other hand, there is a chance to create a place "for yourself." People in the party Crataegus laevigata not search for new employees at whol, but if they realize that you have loaded live in a indisputable flying field, they behind open a vacancy for you. The meritocratic draw near in HFT firms usually allows sufficient autonomy in projects. Therefore, if you desire to work in an initiative environment side by position with extremely smart and talented mass, and so likely HFT will lawsuit you.

Working hours in this area are above average. 60-70 hours a week is not uncommon, especially when the project deadline is close. However, intense intellectual work and monetary system compensation usually outweighs the workload. This lifestyle is not for everyone.

How to enter upon the environment of high-oftenness trading

There are several shipway in which you can get ahead into this environment, but almost of them require superior technical skills in ane or more of the exact sciences: math, physics, computer skill, or EE. Usually people come to HFT firms afterwards:

• Postgraduate studies . Most HFT firms hire candidates after grad school in a special area applicable to the company's objectives. Such an go about is the simplest, since according to a doctoral dissertation, publications or the status of a university it is easier to determine the candidate's abilities. Thus, if you really want to make a career in the field of HFT, search in the field of bass latency systems for transmitting selective information can be a good help. There are also frequent cases of selection of distinguished students from the last courses of the most popular technical universities (MIT, Stanford, Cambridge, Imperial) with their resulting training for a specific position.
• Gaining feel in the high-tech industry . Experts in specialized areas where minimal information transmission delays are necessary (for instance, in telecommunications) are usually hired for their knowledge of the subject area. However, it is worth noting that, as a rule, for standard work in their field, in any case, they need an extensive technical understructur. Scientists working on projects coreferent to high-functioning computation (for example, in the CERN information midway OR other national laboratories with supercomputers) are in high demand due to their experience with Big Data.
• Experience on the securities market . Demanded are those who get it on how the act upon of the central is organized "from the inside". This is explained by the fact that such people are most likely to facilitate in creating new algorithms that profitably use the information architecture of a particular exchange.

One of the most common misconceptions is a reinforced notion that to gain a place in the HFT sphere, extensive knowledge of finance is required. Most HFT firms do not pay attention to the availableness of knowledge in the field of finance, given the sufficient level of technical competency of the candidate in other areas necessary for the constitution.

Gross skills

Lin responsibilities at HFT firms are very diverse. Almost every employee is forced to have a higher technical Education and the ability to conduct independent research in this area (i.e., he mustiness have a good knowledge of theoretical material). Since HFT is fundamentally a "technology romp", most should too have knowledge in computer engineering, EE, operating room know working with low latency information transmission in other areas, such as telecommunications.

There is also now a demand for knowledge and experience with a certain type of software, such as graphic subsystems (GPUs) and drug user-programmable logic gate arrays (FPGAs)

By and large, any subject sphere that can somehow trim down delays in bidding or step-up the speed of algorithmic calculations will find its place in the HFT. Examples of such areas are:

• Schemes of the work of commonplace exchanges . Among those engaged in high-frequency trading, the basis of skills is extensive knowledge in organizing the work of stock exchanges. Knowing how the application book works, as well as totally the intricacies of technology on a particular exchange, can free rein into your hands.
• Processor architecture . Commanding-frequency trading involves a significant number of operations in a relatively short geological period of time. Keep in nou that increasing the speed of these operations in any way will do you a plus. It is useful to have noesis of processor architectures and hardware, especially systems differently x86 architecture (much as GPUs and FPGAs).
• Networks with minimal delays in transmitting information . One of the main sources of information transmission delays in trading is the network stack. HFT firms value experience in optimizing packet processing, writing customs duty network modules, and using the Infiniband screechy-speed switched serial coach.
• Sympathy the laws . Cognition of such legal acts as the "Regulation of the National Bank Scheme" (Regulation NMS) of the U.S. and the EU Directive "On Business enterprise Instrument Markets" is necessary in HFT operations.
• Kernel optimization . The main task during optimisation is to reduce delays and increase the speed of operations. Therefore, today there are frequent cases of rewriting the core of the software program to hotfoot up the process. More HFT firms value their experience in modifying the Linux kernel.
• Online algorithms . Speaking of delays in performing operations, I did non go into the inside information of the HFT algorithms. A great deal, these algorithms admit "repeating" operations with arithmetic mean, erroneousness, and running regression. Therefore, the analysis of the results of previous calculations in time is very important.
• Programming languages . Contempt the fact that most UHFT companies switched to specialized hardware (for direct processing of information and network exchange), in cases less dependent connected delays, trading companies can use multithreading of C, C ++ and Java languages ​​(with a special dustman). Some trading firms value their receive functioning with much languages ​​and parallel calculation.

As you tin see, these skills are often technical in nature and require an academic arcdegree or several years of bring on with certain technologies on an industrial scale. If you have see with the preceding things, then you accept a chance to prove yourself in an question with an HFT firm.

Work searches

Eastern Samoa with most financial positions, it's deserving looking for a chore through employment agencies. The largest HFT firms are located mainly in New York and London. Michigan also has a battalion of organizations involved in tenor-frequency trading. Recruiters are usually knowledgeable in the subject domain and are able to suffice whether your experience is suitable for the requirements of the position. Note that the bar is very high! Most likely, you leave have to make every effort to find a job, which can take a sight of your time.

Despite the fact that you potty apply directly to the keep company, the most difficult is the process of finding companies engaged in high-frequency trading. Usually, if you are popular in your highly special field, the organization will try to hire you along its own. This can play into your hands if you really want to study in this company, release your enquiry, take part in conferences and merely seriously improve your track record.

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