High frequency trading firms reap bumper Australian profits on surging volatility
Business — and bonuses — at Susquehanna, Optiver and IMC are soaring as their Sydney outposts capitalise on the time zone to trade lucrative Asian markets.
Australian traders at high frequency trading firms are landing record bonuses as a perfect storm delivers bumper profits across the sector.
The three largest Australian outposts of global giants Optiver, IMC Trading and Susquehanna International Group (SIG) all reported enormous profit growth last year, with their largely Sydney-based traders cashing in.
Local accounts lodged with the financial regulator and viewed by Capital Brief show all of the biggest firms grew their profits and revenue last year, generating large bonuses for Sydney staff largely trading offshore markets.
SIG, which remains a major market maker in Australia, hit record revenue of $1.34 billion, up from $823 million the year prior, and recorded a $353 million profit. A hiring surge added almost 90 staff to bring headcount to 423, and average pay rose 19% to over $472,000, even as a fresh capital injection saw return on equity fall from 20.2% to 13.5%.
