Hudson River Trading generated a record $11.4bn in trading revenue in the second quarter as sharp market moves, including turbulence in AI-related stocks, created lucrative opportunities for the proprietary trading firm, according to a report by the Financial Times.
The Wall Street trading specialist produced $7.4bn in net profit for the three months through June, according to a person familiar with the results. The firm is also not expecting a repeat in the current quarter of the losses suffered by rival Jane Street, the person said.
Market volatility linked to the war in Iran and dramatic swings in technology and artificial intelligence stocks have provided a favourable backdrop for proprietary trading firms, whose automated market-making operations can exploit small price discrepancies across markets.
The results underscore the scale of the opportunity for the sector. Jane Street, Hudson River Trading and Citadel Securities generated more than $60bn in combined trading revenue in 2025, with the leading firms also outpacing the trading businesses of major banks during periods of heightened volatility this year.
Jane Street reported a $15bn loss in July after investments linked to AI stocks and Leopold Aschenbrenner’s Situational Awareness hedge fund suffered sharp reversals. Despite that setback, the firm had generated more than $40bn in net trading revenue in the year through last week.
Hudson River, like its rivals, is also committing substantial resources to artificial intelligence and computing infrastructure as proprietary trading firms compete for access to increasingly powerful technology.
The firm’s head of AI, Iain Dunning, recently said the amount of computing capacity available to Hudson River next year compared with this year would increase dramatically, reflecting the rapid pace of investment in AI-powered trading systems.
Hudson River reportedly declined to comment on its financial results.
