Fri Dec 06 10:53:59 UTC 2024: **Jane Street’s Record-Breaking Year Dwarfs Wall Street Rivals**

**NEW YORK, December 5, 2024** – Jane Street Capital is reporting staggering financial success, eclipsing even the top Wall Street investment banks in equities and credit trading. The quantitative trading firm revealed record-breaking third-quarter net trading revenue of US$5.8 billion and adjusted EBITDA of US$4.3 billion – more than double year-earlier figures. This follows a first-half revenue of US$8.4 billion, also exceeding the previous year’s performance by more than double. Analysts project full-year revenues to reach approximately US$20 billion, a significant jump from the US$10-11 billion typically generated in previous years.

This exceptional performance comes amidst a robust year for credit and equities trading, fueled by rising equity markets, tight credit spreads, and high corporate bond issuance. While major banks like Bank of America and Citigroup reported mid-to-high-teen percentage year-on-year revenue increases in equities and credit, Jane Street’s gains far outstripped theirs, even when considering the banks’ additional revenue from securitized trading and financing.

Jane Street’s success extends across various sectors, including a dominant position in ETFs, significant growth in the US equity market (competing with firms like Citadel Securities), and a substantial presence in corporate bonds. The firm’s aggressive expansion into bond trading, leveraging electronic platforms, has allowed it to challenge traditional banks. Its global reach is also expanding, with evidence suggesting substantial profits from Indian options trading.

S&P Global Ratings attributes Jane Street’s success partly to its robust risk management and compensation model, which is viewed as less prone to excessive risk-taking compared to its competitors. The firm’s significant capital base of over US$24 billion has further fueled its expansion.

The firm’s remarkable success is highlighted by aggressive recruitment strategies, with reports of US$500,000 starting salaries for top computer science graduates. This underscores Jane Street’s growing dominance in the financial world, overshadowing traditional Wall Street powerhouses.

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