Hudson River Trading posts $11.4bn Q2 revenue

Hudson River Trading posted a record $11.4 billion in trading revenue and $7.4 billion in net profit for the second quarter, covering the three months ended June, a person familiar with the results said. Volatility linked to the war in Iran and sharp moves in AI-related technology stocks increased opportunities for the firm’s trading systems.

The firm’s automated market-making systems use high-speed algorithms to capture small price differences across venues. Those strategies tend to generate revenue when geopolitical events and large sector rotations push prices rapidly.

The person familiar with the results said Hudson River does not expect the current quarter to mirror the losses suffered by rival Jane Street in July.

Hudson River, Jane Street and Citadel Securities have generated more than $60 billion in combined trading revenue in 2025. Jane Street recorded an estimated $15 billion loss in July after positions tied to AI investments and the Situational Awareness hedge fund moved sharply against it, after producing more than $40 billion in net trading revenue earlier in the year.

Firms are increasing spending on artificial intelligence and computing infrastructure. Iain Dunning, the firm’s head of AI, noted ‘the amount of computing capacity available to Hudson River next year compared with this year would increase dramatically.’ Greater compute capacity allows firms to run larger models, backtest strategies faster and shave milliseconds off execution times.

Hudson River declined to comment on the financial figures. Market participants say proprietary trading firms have benefited from a mix of macro-driven volatility and concentrated moves in technology stocks, which can create short-lived mispricings when liquidity is thin.