[HN Gopher] How to Build an Exchange (2017)
       ___________________________________________________________________
        
       How to Build an Exchange (2017)
        
       Author : mksherif
       Score  : 154 points
       Date   : 2023-01-06 13:50 UTC (9 hours ago)
        
 (HTM) web link (www.janestreet.com)
 (TXT) w3m dump (www.janestreet.com)
        
       | ttobbaybbob wrote:
       | 2023 version would have more than one mention of {compliance,
       | regulat*, accounting}
        
         | [deleted]
        
       | dang wrote:
       | Related:
       | 
       |  _How to Build an Exchange (2017) [video]_ -
       | https://news.ycombinator.com/item?id=27879230 - July 2021 (12
       | comments)
        
       | hardwaregeek wrote:
       | I've always been curious whether someone will succeed in using
       | the same development strategy as Jane Street, namely using a
       | non-C++ language as their primary language. I suspect OCaml may
       | have been a very good choice back in the early 2000's simply
       | because C++ was a much different language and there weren't many
       | options for other languages. Building up an ecosystem was not a
       | bad plan because most languages did not have much of an ecosystem
       | anyways. Nowadays ecosystems are a lot more developed. But on the
       | flip side, that could mean you could stand to use a language like
       | Rust that has an ecosystem and interoperability with C++. I know
       | Tsuru Capital uses Rust but I'm not familiar with any other
       | firms.
       | 
       | It also could be that Jane Street succeeded regardless or even
       | despite OCaml. At the end of the day OCaml isn't going to ensure
       | that your trading strategies work. It's not going to suddenly
       | create alpha. But I do suspect they've gotten serious hiring and
       | marketing returns by using OCaml. And benefited the OCaml
       | ecosystem as a byproduct, which is a pretty solid side-effect,
       | even if side effects are not very functional :D
        
         | pclmulqdq wrote:
         | There is a little bit of survivorship bias here: in the 2000's,
         | the two main languages of HFT were C++ and Java. By 2015, all
         | the Java shops (and many of the C++ shops too) had failed. Lots
         | of companies tried to do something other than C++, but most of
         | them chose wrong.
        
           | log_n wrote:
           | A shell of Allston (formerly big Java shop) lasted until last
           | year.
        
         | codetrotter wrote:
         | > whether someone will succeed in using the same development
         | strategy as Jane Street, namely using a non-C++ language as
         | their primary language
         | 
         | It's gonna happen and it's gonna be Rust
         | 
         | > you could stand to use a language like Rust that has an
         | ecosystem and interoperability with C++.
         | 
         | Indeed :)
        
           | LAC-Tech wrote:
           | Maybe. Rust as a core language is less productive than ocaml,
           | by a lot. But Rusts standard library is just so much better
           | than Ocamls (including Jane Streets version) - which tends to
           | even it out.
        
         | signify1121 wrote:
         | I have worked for a big (probably more successful) competitor
         | to Jane Street, that uses in its different offices C#, C++,
         | possibly some Java that I'm unaware of, and for non-production
         | systems a very large mix of everything under the sun (Python,
         | R, etc.)
         | 
         | The idea that the language is part of their success is simply
         | absurd. If anything having to have to develop and maintain an
         | entire ecosystem probably slowed them down more than anything.
        
         | hot_gril wrote:
         | I once wrote one mostly in SQL with a Postgres database. It
         | behaved pretty predictably with concurrent usage. I wonder how
         | many trades per second it could do. Postgres itself can handle
         | a lot of the difficult details, but reinventing those wheels
         | for trading in particular can probably get you something
         | faster.
        
       | samwillis wrote:
       | The context here is that Sam Bankman-Fried of FTX and a number of
       | the other executives (Caroline Ellison and Brett Harrison) were
       | previously traders at Jane Street. This video is from 2017, a
       | couple of years prior to the FTX launch. It makes you wander if
       | any of them were in attendance.
        
         | [deleted]
        
         | jasonzemos wrote:
         | While I wouldn't be surprised to see some proactive PR from the
         | company in the wake of recent events, perhaps including the
         | post on the zkSNARK competition last month; which was in my
         | humble opinion one of the few submissions that has truly moved
         | me since the late 2000's on this site:
         | 
         | I feel obliged to attest that the people I knew working at Jane
         | Street at that time were some of the straightest shooters one
         | could know. My anecdote is that SBF's toxicity didn't originate
         | in their culture. Perhaps it was a counteraction to it, if
         | anything.
        
           | sdenott wrote:
           | Can you link zkSnark convo mentioned here?
        
             | yellowstuff wrote:
             | https://blog.janestreet.com/zero-knowledge-fpgas-hardcaml/
        
         | ackbar03 wrote:
         | Sbf was playing LoL at the same time
        
         | NkVczPkybiXICG wrote:
         | FTX didn't make any of the architectural decisions presented in
         | this talk.
        
           | dcolkitt wrote:
           | Yeah, as an exchange FTX was pretty terrible. The matching
           | engine was notorious for being high latency, unreliable, and
           | having all sorts of undocumented issues. Every algo trader
           | there will tell you horror stories about trying to cancel an
           | open order, getting a cancel confirmation, then getting
           | notified that the order was executed. Sometimes seconds
           | later.
           | 
           | What really gave FTX a competitive advantage was its cross-
           | margining system. It was super easy to post collateral in any
           | supported asset, and all open positions were automatically
           | margined against each other. So if you were doing something
           | like pairs trades between spot and futures, you didn't need
           | to constantly monitor and manually move capital between the
           | silos. In hindsight though it's not clear if this was
           | possible because of better engineering, or just because
           | Alameda was internalizing all the risk.
        
             | CoolGuySteve wrote:
             | The main advantage of FTX's exchange was that it was far
             | better than Binance's but that's barely saying anything.
             | 
             | I'm not sure why crypto exchanges have such lousy
             | technology. Lost acks, weird parser errors, missing order
             | id fields, sessions giving no indication that the matching
             | engine is down, etc.
             | 
             | It seems like any conceivable way an exchange can break
             | will be encountered after only a couple months of trading.
             | It's a complete shit show compared to traditional exchanges
        
               | dcolkitt wrote:
               | There have been a few valiant attempts to build crypto
               | exchanges with modern technology and matching engines.
               | Generally the problem these run into is that, while the
               | algo traders and market makers love them, they have no
               | competitive advantage in attracting retail order flow.
               | Trading firms have no interest in just trading against
               | each other, so without retail flow nothing happens.
        
               | hot_gril wrote:
               | Having worked on several side projects that involve
               | money, I'll bet most money-related computer systems are
               | full of race conditions and other wacky behavior. There
               | are so many gotchas. For example, just writing a simple
               | "bank account" system/database, it's tricky to ensure in
               | a performant way that concurrent transactions don't bring
               | a user's balance below 0. If you're sending out money via
               | ACH or something, try handling all the ways that can fail
               | and need to be retried.
               | 
               | I trade regular stocks in my Chase account. A few times,
               | it was down for maintenance after-hours, meaning I
               | couldn't enqueue trades to execute the next day. Not a
               | big deal, but doesn't inspire confidence.
        
               | w1nst0nsm1th wrote:
               | Because it was all a scam and didn't need to polish
               | details ?
        
               | elmomle wrote:
               | One of the stranger things coming out of the collapse of
               | FTX is that it wasn't _all_ a scam; if SBF and co they
               | had simply let FTX function without giving special
               | privileges to Alameda, it would have been a pretty non-
               | scammy crypto exchange (overinflated in value, sure, but
               | not fundamentally scamming its customers) and they all
               | could have made great deals of money on that alone. But
               | of course, that isn't what they did.
        
               | vgatherps wrote:
               | There's a graveyard full of "crypto exchange but built
               | with good tech", ftx even bought one iirc.
               | 
               | The market favors move fast, market to retail, etc etc
               | over spending time cutting microseconds off the 99th%.
               | 
               | A lot of the exchanges also don't have people who know
               | what they're doing. Lots of normal startup folks coming
               | from an environment where "premature optimization is the
               | root of all evil" and "move fast break things" is the
               | norm.
        
       | bcjordan wrote:
       | @dang could we get a (2017) added to this? Changes the context
       | quite a bit given FTX folks worked at Jane Street previously and
       | a modern version of this talk would have a much different
       | context.
        
         | [deleted]
        
           | [deleted]
        
         | 1vuio0pswjnm7 wrote:
         | FTX's Gary Wang worked at Google.
         | 
         | https://www.forbes.com/profile/gary-wang-1/
         | 
         | It's intriguing how Forbes 400 list includes criminals. If
         | someone tricks people into "investing" with them and they
         | accumulate enough billions of US dollars, and it takes a few
         | years for the authorities to act, then do they get a spot on
         | the Forbes 400. What are the rules.
        
         | ctvo wrote:
         | I don't think the context changes at all. This talk is about
         | high performing systems (millions of requests per second)
         | written in OCalm. There is nothing here related to the
         | criminality of FTX or what its non-technical founder decided to
         | do with customer funds as a business decision. It matters very
         | little that one or more of them used to work as an analyst at
         | Jane Street.
        
       | paulpauper wrote:
       | _In 2017 we extended our trading experience, infrastructure, and
       | technology to digital assets, and we're now trading crypto 24 /7
       | around the world. We price all the most actively traded spot
       | tokens such as Bitcoin and Ethereum in addition to derivatives
       | like futures and ETPs, and we trade on almost all major global
       | market centers, including crypto exchanges and traditional
       | venues. We're also a major OTC crypto liquidity provider, and our
       | JCX single-dealer platform provides reliable, integratable
       | liquidity in digital assets. Our institutional-grade crypto
       | offering is a natural extension of our deep cross-asset expertise
       | and our experience trading complex, difficult-to-price
       | securities._
       | 
       | Interesting. Crypto has much less liquidly overnight compared to
       | other markets, no? How would this work? Coinbase?
        
       | Zaheer wrote:
       | Fun fact: Jane Street, Citadel and other HFT firms pay
       | exorbitantly. You can see the base salary ($200-300k) posted
       | public here: https://www.janestreet.com/join-jane-
       | street/position/4274288...
       | 
       | Even interns make $120/hr: https://www.levels.fyi/internships/
        
         | delta_p_delta_x wrote:
         | I'm quite salty about HFTs. I'm a final-year undergraduate with
         | a bunch of close friends who all love C++ (yes, we're
         | masochistic that way). They're all really smart, too (me, not
         | so much--my GPA is 3.00/5). However, after a while, it got
         | really dull and frankly, a bit exasperating when all the rest
         | of them could discuss were HFTs, their ridiculous, outrageous
         | salaries, matching engines, order books, and low-latency
         | trading. Heck, one of our assignments last year was to write
         | such an engine in C++. It seems C++ developers are particularly
         | in demand at most HFTs.
         | 
         | Some of these companies I have never even heard of before
         | having entered CS--Jane Street, Citadel, HRT, DRW, Ansatz, Two
         | Sigma... Their names and websites are cryptic, and their job
         | position listings are even more so, unless one knows that
         | they're mostly proprietary traders--in other words, making
         | money for money's own sake.
         | 
         | It feels dirty and excessively capitalist--these companies
         | don't even have products to show for all their effort. Any
         | clients they _do_ have probably already make millions to
         | billions, too.
         | 
         | My friends defend themselves by saying 'HFTs make money by
         | keeping the market liquid', 'there's nothing wrong with
         | arbitrage', etc. That's fair, but I still feel that's just
         | sugar-coating what I said.
         | 
         | At the same time, I don't really say anything in person to my
         | friends, because, well, they're friends, and secondly, my lousy
         | grades make me feel thoroughly unqualified to make any sort of
         | criticism.
         | 
         | I personally would rather do embedded, automotive, avionics, or
         | game engine development. I just wish I had someone to discuss
         | this with. Hardly anyone I know wants to do these instead,
         | because the salary is lousy to above average, the hours are as
         | bad, and especially game development is considered a mostly
         | rubbish job to have. It really sucks, because I've gamed all my
         | life and always found video games pretty damn amazing, both
         | technically and just in general. It was a pretty bad bubble-
         | bursting moment when I discovered just how bad the game dev
         | situation was--overwork, crunch, sexual abuse and sexism, bean-
         | counter-led design and marketing decisions.
         | 
         | I'm not looking for 100% job satisfaction (I accept even the
         | most exciting work will have its dull periods), but it would be
         | _nice_ if the thing I spent 8-10 hours a day doing for a salary
         | was something that remotely excited me and others, instead of
         | just mindlessly piping money from X to Y and back just because
         | it paid half a million a year.
        
           | caddemon wrote:
           | Most people I've met that actually got jobs at top HFTs were
           | quite curious about a lot of topics in school (and still are
           | with extra time they have). I'm surprised your friends are so
           | fixated on HFTs while there are so many interesting and/or
           | fun other things to spend time on when undergrad on campus.
           | 
           | A lot of HFTs have their own training programs anyway for the
           | job specific knowledge, so it is more important to build up
           | the right base math and/or dev background than to hyper
           | fixate on HFTs all of undergrad, even if your end career goal
           | is to make bank.
        
             | _dain_ wrote:
             | >Most people I've met that actually got jobs at top HFTs
             | were quite curious about a lot of topics in school (and
             | still are with extra time they have).
             | 
             | yeah and that's the worst part, they take the brightest
             | minds of the generation and have them working on moving
             | money around instead of building fusion rockets
        
               | caddemon wrote:
               | Tbf many of them were pretty jaded/burnt out by trying to
               | do academic research before fully taking the plunge. I'm
               | sure there are smart people drawn by the money right out
               | of the gate, but other fields have also done a really
               | good job of driving people away.
        
             | delta_p_delta_x wrote:
             | > I'm surprised your friends are so fixated on HFTs while
             | there are so many interesting and/or fun other things to
             | spend time on when undergrad on campus
             | 
             | Many of them were or are interested in other things like
             | compilers, home-labbing; a couple of them game, too. It's
             | just that because we're about to graduate, job offers
             | dominate the conversation, and HFT jobs dominate _that_
             | conversation.
        
               | caddemon wrote:
               | Fair enough, the time around graduation can be pretty
               | stressful for everyone!
        
           | rr888 wrote:
           | > 'HFTs make money by keeping the market liquid'
           | 
           | Ironically they only really keep the market liquid when the
           | sun in shining. When there is a big crash and you really need
           | liquidity most HFTs disappear.
           | 
           | They have put a lot of highly paid human traders out of
           | business though which is something. The C++ devs might be
           | earning a lot but its less than their predecessors.
        
             | slymon99 wrote:
             | Do you have any evidence for this, empirically? I mean yes,
             | HFTs aren't going to let their orders sit stale when FOMC
             | announces a giant rate hike, they aren't going to lose a
             | bunch of money to keep the market healthy. But generally
             | when vol is high, liquidity is at a premium, so I would
             | imagine HFTs become a higher percentage of the market
             | (though spreads are still going to be wider).
        
           | Game_Ender wrote:
           | If you want a good salary with impact and embedded/high
           | performance C++ look into the self driving field. Check
           | companies like "Cruise" and "Waymo" and see levels.fyi. It's
           | not all sunshine and rainbows, but it is making the future vs
           | simply manipulating the finical system.
        
             | delta_p_delta_x wrote:
             | Thanks for the recommendations. I've applied to more
             | traditional auto firms (BMW, VW, Mercedes, Volvo), and
             | hadn't really considered the newer ones. Cruise looks
             | particularly interesting.
        
         | kennend3 wrote:
         | Have family working there. You can get past 300K fairly easily
         | once you factor in signing bonus, annual bonus, and "extras".
         | 
         | They pay VERY VERY well indeed.
        
           | Zaheer wrote:
           | Yup, that figure I posted was just base but we often see
           | folks getting multiples of that through bonuses.
        
         | rr888 wrote:
         | Its kinda sad though being a great company and the only thing
         | people know you for is high salaries. Anything else good about
         | the company?
        
           | emptybits wrote:
           | Jane Street is responsible for the Signals and Threads
           | podcast[1], which I always enjoy. They also contribute a lot
           | to the OCaml language, standard libraries, and do a great job
           | of explaining why OCaml is a great language and paradigm.
           | I've learned a lot because of Jane Street's sharings.
           | 
           | I have no connection or interest in Jane Street but this sure
           | gives me a positive impression of the company.
           | 
           | [1] https://signalsandthreads.com/
        
             | nequo wrote:
             | Yaron Minsky, the host of Signals and Threads, is also one
             | of the two authors of Real World OCaml[1] which is a good
             | resource on the language.
             | 
             | [1] https://dev.realworldocaml.org/
        
               | caddemon wrote:
               | For anyone that did competition math in HS one of the two
               | authors of the main Art of Problem Solving books is also
               | high up at Jane Street, on the trading side. JS sponsors
               | stuff like math prize for girls now.
               | 
               | Obviously there's a potential recruiting benefit to
               | funding contests and posting monthly puzzles and whatnot,
               | but I still think it's a cool vibe that not a lot of
               | other companies have.
        
         | paxys wrote:
         | They do pay extremely well, but are also very selective. The
         | kind of talent they are looking for can earn similar salaries
         | at large tech companies like Google ($400K-500K TC is pretty
         | common at staff+ levels).
        
           | caddemon wrote:
           | They do a lot of hiring out of school though, so they are
           | selective but if you make the cut you'd definitely be earning
           | more at the start of your career. Plus if you perform well
           | you can make well over 500K TC by the time you would have
           | been promoted to staff at FAANG, because of bonuses.
        
           | kennend3 wrote:
           | One difference is Google, etc are all doing massive layoffs
           | and i doubt JS, Citadel, etc will do this.
        
             | nequo wrote:
             | Note though that Citadel is reputed to have a turnover rate
             | of 100% per year. Their layoffs take care of themselves.
        
               | hermitdev wrote:
               | I spent 9 years there, left a decade ago. Turnover is
               | high, but this is a gross exaggeration. It is stressful,
               | and not everyone can hack it. I was there during and
               | after the '05 layoff when roughly 2/3s of IT was cut.
               | That's still the worst I've heard of from what I hear
               | from friends that are still there.
               | 
               | Ken G definitely does the "Good to Great" getting the
               | right people on the bus thing, which typically means the
               | bottom 5-10% are cut, but even that was slowing before I
               | left.
        
               | nequo wrote:
               | Thanks for correcting me. Did you get a sense of whether
               | engineers had a higher or lower turnover rate than
               | traders?
        
               | tomjerry777 wrote:
               | The turnover for engineers tends to be lower than for
               | traders at citadel and at a lot of quant firms.
               | 
               | Additionally, the turnover for citadel is not evenly
               | distributed across teams. Certain teams and orgs have a
               | lot more turnover than others. Some teams are made up of
               | people with <=2 YOE at company while others are made up
               | of people with >=15 YOE at company.
        
               | kennend3 wrote:
               | This!
               | 
               | My personal background is a "well known hedge fund" and
               | the turnover there was rather high.
               | 
               | Many quit because it wasn't "a good fit".
        
             | johnmaguire wrote:
             | Really? Isn't FinTech getting hit harder than just about
             | any other industry right now?
        
               | kennend3 wrote:
               | First, i dont consider Citadel, JS, etc "fintech" because
               | they are not in the same line of work.
               | 
               | " Fintech, a portmanteau of "financial technology",
               | refers to firms using new technology to compete with
               | traditional financial methods in the delivery of
               | financial services. "
               | 
               | This is NOT what people like CIT, JS, etc. do.
               | 
               | So maybe FinTech is being hit very hard, but from what i
               | hear Cit, JS are doing just fine (no real layoffs).
        
               | smabie wrote:
               | Haha yea FinTech would be a pretty derogotory term to
               | call a HFT firm
        
               | ecshafer wrote:
               | I agree that Two Sigma, Jane Street, Renaissance, etc.
               | are NOT Fintech. Fintech is a really large umbrella which
               | seems to includes people like Paypal or Bloomberg and
               | things like robotraders or companies that deal with some
               | financial product. Hedge Funds / HFT / Algo traders can
               | be really sophisticated with their technology, but I
               | wouldn't call them "Fintech".
        
               | nvarsj wrote:
               | HFT makes money off of volatility. The more the world
               | burns the more money they make by keeping markets liquid.
        
               | durumu wrote:
               | That's true, in much the sense that doctors make money
               | off people being sick. In times of high volatility, it's
               | HFTs that provide liquidity and keep spreads narrower
               | than they'd otherwise be. It is extremely illegal to
               | purposefully make markets more volatile; good trading
               | firms are not going to do that.
        
             | paxys wrote:
             | Smaller companies do layoffs as well. They just aren't as
             | highly publicized as those at tech giants. Severance
             | packages are usually worse/nonexistent as well.
             | 
             | HFT companies also have much higher performance bars and
             | rates of overwork/burnout. I'm willing to bet that people
             | are leaving Jane Street, Citadel etc. (whether voluntarily
             | or not) at much higher rates than large tech companies like
             | Google.
        
               | mmiyer wrote:
               | True of Citadel, but Jane Street is supposed to have a
               | solid wlb, and because of the high pay and the few
               | companies willing to pay at that level, people generally
               | stick around there. These kind of finance companies also
               | do better in volatility so they're definitely not laying
               | off right now.
        
               | Ntrails wrote:
               | I would assume JS has industry standard levels of notice,
               | non-compete and deferred comp - which will sure help keep
               | people around
        
               | caddemon wrote:
               | Jane Street definitely does not have a non-compete.
               | Citadel does though.
               | 
               | Deferred compensation is probably not relevant to any of
               | the major quant firms, payment is almost entirely cash.
               | If you're high enough up to start receiving stake in a
               | prop firm directly as part of your bonus you are an order
               | of magnitude above the TC cited by the original comment.
               | 
               | Of course, the amount of comp you can get is a big reason
               | people stick around. For that level of earning potential
               | JS is really good on the WLB front. But it's not going to
               | be as good as big tech is (or at least has been), since
               | QT/QR just has different requirements as a field.
        
               | boring_twenties wrote:
               | When I worked at a small prop shop, the cutoff was $400k
               | TC, after which 50% would go into the fund for N years.
               | 
               | Currently I work at a large bank. My comp is all cash,
               | but many of my colleagues get deferred stock
               | compensation. Not sure what exactly the limit is but it's
               | definitely much less than, say, $1m.
        
               | caddemon wrote:
               | Might depend on the firm (or times) then, the starting
               | trader TC is already pushing 600K at HRT, JS, etc. and
               | many don't let you invest year 1 even if you wanted to.
               | I'd be shocked if any of the major names made you take
               | comp as a stake in the fund pre-1m today.
               | 
               | Large banks are for sure a different story, though I've
               | heard of other large banks buying people out that they
               | wanted to hire by offering the equivalent package in
               | their stock of what the guy would've made in the other
               | company's stock.
        
               | Ntrails wrote:
               | > Deferred compensation is probably not relevant to any
               | of the major quant firms, payment is almost entirely
               | cash.
               | 
               | Deferred != stock.
               | 
               | > If you're high enough up to start receiving stake in a
               | prop firm directly as part of your bonus you are an order
               | of magnitude above the TC cited by the original comment.
               | 
               | Fair
        
               | caddemon wrote:
               | Yes you could theoretically delay cash comp over a period
               | of 3+ years like tech companies do with stock, but I've
               | never heard of that happening.
               | 
               | I suppose by the technical definition the year end bonus
               | cash is deferred comp, but I don't think 1 year is
               | especially hard to plan around. People might stick out an
               | extra few months because of it but it's not locking
               | anyone in for years at a time. Plus even if you
               | subtracted an entire year from the JS retention rates
               | they are still quite good.
               | 
               | Regardless, the amounts cited by the original comment are
               | only the base which isn't deferred by more than 2 weeks
               | at a time, whatever your bonus potential is.
        
               | Ntrails wrote:
               | > I've never heard of that happening.
               | 
               | I have heard of it enough that I assume it is industry
               | standard (much like the non compete).
               | 
               | Admittedly I am more familiar with the quant side than
               | pure dev
        
               | caddemon wrote:
               | Interesting, I only have close friends at a handful of
               | places so perhaps those are exceptions. Could be a dev vs
               | trader thing too, I have heard the trader bonuses can get
               | really nuts so maybe a deferred structure starts to make
               | more sense at a point.
        
               | KRAKRISMOTT wrote:
               | When they start letting you put your own cash in, you
               | need cash to start with.
        
               | caddemon wrote:
               | Jane Street does much better at retention than Citadel
               | and probably many other quant firms. The performance bar
               | is definitely higher than the average at Google but it's
               | not like there is no WLB either.
               | 
               | Because they are more selective about fit to begin with I
               | wouldn't be surprised if JS has better yearly retention
               | than most FAANGs. People seem to hop between different
               | big tech cos quite a bit (pre hiring freezes anyway).
        
               | lotsofpulp wrote:
               | I do not see a way to compare big tech companies and Jane
               | Street or Citadel, seeing as how the big tech companies
               | employ many tens of thousands of very qualified people
               | and Jane Street and Citadel are a couple thousand max.
        
               | caddemon wrote:
               | Yeah there are a lot of differences, I wouldn't normally
               | bring up the comparison. My point was just that the
               | turnover is not as bad as the other commenter was
               | implying.
        
             | jrockway wrote:
             | Where is Google doing layoffs? The latest news I have is
             | that people are very worried about layoffs, but so far
             | they've only started putting people on rebranded PIPs.
             | 
             | The other FAANGs are definitely laying people off, though.
             | I personally think the recession is a self-fulfilling
             | prophecy, but regardless of my take on the fundamentals, it
             | is certainly fulfilling itself and everyone in tech should
             | be pretty worried right now. This is not the year when
             | you're going to increase your salary by jumping to a cool
             | startup as employee #3.
        
               | dasil003 wrote:
               | > _This is not the year when you 're going to increase
               | your salary by jumping to a cool startup as employee #3._
               | 
               | Agreed, you won't get a big salary out of the gate
               | because unproven startups paying huge salaries are
               | dropping like flies as the easy capital dries up. On the
               | other hand, the likelihood of getting in on the ground
               | floor of the next FAANG is increasing as staffing costs
               | decrease and behavioral changes increase during a
               | recession. EV obviously still higher at established top-
               | of-market companies, but when has that ever not been the
               | case?
        
               | kennend3 wrote:
               | you are correct, it has not happened yet, but you willing
               | to bet it wont in the next 6 months?
               | 
               | https://www.seattletimes.com/business/google-employees-
               | brace...
               | 
               | https://www.cnbc.com/2022/12/22/google-tells-employees-
               | highe...
        
           | DWqRdped wrote:
           | a high performer at citadel or JS can make 1m in 5 years. i
           | don't know many people at google make that much.
        
             | dasil003 wrote:
             | Not many at Google receive that much in their offer letter,
             | but with the stock appreciation over the last decade and
             | stacked refresher grants, I'd be willing to wager there
             | were thousands making >$1M as of Nov 2021 (many fewer since
             | the stock has fallen though).
        
               | hansvm wrote:
               | If Google is offering an initial total cash equivalents
               | of $300k (say $140k salary, $480k/4 stock, 15% annual
               | bonus on each), that's roughly the same deal as somebody
               | else getting a base salary of $300k. The fact that a
               | particular investment decision (GOOG) can accidentally
               | push the individual's yearly increase in net worth past
               | $1M isn't a good way to judge what Google is actually
               | offering:
               | 
               | Anyone with a base salary of $300k can obtain a similar
               | payoff structure by taking out a $550k loan to invest in
               | GOOG, and taking out additional smaller loans at each
               | stock refresh. The tax benefits from capital gains/losses
               | and time-value-of-money benefits from getting your bonus
               | sooner should handily outweigh the cost of servicing the
               | loan, but even in a worst-case scenario where you pay
               | interest for no benefit, that example Google offer would
               | be a lot more comparable to a $315k-$330k salary, not a
               | $1M+ salary.
        
             | Sevii wrote:
             | Citadel has 2600~ people, Jane street 2000~ while google
             | has 150,000~.
        
         | selectodude wrote:
         | Those are low numbers compared to the smaller prop shops that
         | routinely pay 1MM+.
         | 
         | Gotta have a PhD in pure math though. That shit is bananas.
        
           | smabie wrote:
           | You don't need a PhD in pure math to get into these prop
           | shops.
           | 
           | However they do sometimes pay !MM+
        
           | nequo wrote:
           | Do you have a source on the $1mn+ figure? I would be curious
           | to read more about this.
        
             | selectodude wrote:
             | I mean, not really. This is personal knowledge. You can't
             | really look up salaries because the base is like $175k but
             | even in mediocre years they're getting high six-figures in
             | bonus.
             | 
             | Take a peek at what Wolverine, Radix, or Jump are paying
             | new grads though. It's generally like $500k+. Even Jane
             | Street, which is a larger place that hires people who
             | aren't published mathematicians (see: Sam Bankman-Fried)
             | pays $750k
        
               | caddemon wrote:
               | Yeah the numbers he posted were also base from JS and
               | Citadel websites, so they're not reflective of how much
               | one could (or even guaranteed will with the early career
               | bonus floors) actually make at those places.
               | 
               | This is for traders and researchers though. You can get
               | pretty similar early career salary + bonus as a SWE at JS
               | or Citadel, which is probably what more people on HN
               | would be considering. Do you know what kind of pay the
               | smaller shops offer for pure SWE?
        
               | selectodude wrote:
               | I'm afraid that's out of my purview. Only familiar with
               | quant traders and researchers.
               | 
               | I'm sure it's as good or better than big tech. But you
               | don't get to live in San Francisco and the work is a lot
               | more boring.
        
               | slymon99 wrote:
               | > You don't get to live in San Francisco
               | 
               | You get to live in New York City which is unparalleled in
               | the US in terms of urban amenities. The weather can be
               | brutal though.
               | 
               | Or you live in Chicago which is like, still a solid city,
               | but the weather is even worse.
               | 
               | I would disagree that trading firms are more boring than
               | big tech. They are typically much smaller and leaner
               | (even HRT and JS are like sub 2k?), and generally
               | employees have massively more impact and ownership as
               | opposed to being a cog in a 20k developer machine.
        
         | laidoffamazon wrote:
         | I'm more surprised people don't know this. It's the primary
         | cause for my depression.
        
       | matheist wrote:
       | Anyone know of any open-source exchanges at the level of
       | sophistication described here?
        
         | shakezula wrote:
         | I wrote an open source one in Go that I'm still working on.
         | It's never meant for production. The code is at
         | github.com/dylanlott/orderbook and there's an accompanying
         | write up on it at dylanlott.com/orderbook if you're interested.
        
           | eftychis wrote:
           | Thank you for the writeup.
        
         | [deleted]
        
       | jjoe wrote:
       | Are there any technical books or reading material about matching
       | engines out there?
        
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       (page generated 2023-01-06 23:00 UTC)