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New titans of Wall Street: How trading firms stole a march on big banks

Handful of secretive businesses including Jane Street and Citadel Securities have seized market share from the old guard

In Manhattan, Goldman Sachs and Jane Street are separated by a street, a century, and a 160 per cent average pay gap.

Goldman and its rival investment banks were once the titans of trading. Now it is Jane Street that paid an average of over $900,000 per employee last year to Goldman’s $340,000, according to FT calculations.

The upstart, founded at the turn of the millennium, is among a handful of highly secretive trading firms — also including Citadel Securities, Susquehanna International Group, XTX Markets and DRW — to have capitalised on the electronification of financial markets to seize market share from less nimble and more heavily regulated banking stalwarts, and reshaped Wall Street’s trading landscape in the process.

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