High-frequency trading firms in India are offering unprecedented salaries for entry-level roles, even as regulators increase scrutiny over the country’s equity derivatives market, Bloomberg reports. Amsterdam-based IMC Trading BV has offered interns in India up to 1.25 million rupees ($14,182) per month this year, a threefold increase from 2024. Quadeye, one of India’s largest local recruiters, paid newcomers up to 750,000 rupees, a 50 percent rise from last year. By comparison, finance professionals in India earn an average annual base pay of around 700,000 rupees, according to Glassdoor.
The surge in compensation comes amid a decline in derivatives trading following stricter regulations aimed at protecting retail investors. Trading volumes have fallen more than 40 percent from last year’s peak, yet the potential for profits remains significant. Foreign funds and algorithm-driven proprietary trading desks earned approximately 7 billion dollars in gross profits in the year to March 2024 alone.
Daniel Vaz, co-head of quant and trading technology recruiting at Aquis Search, said the demand for profitable traders remains strong. He noted that new trading desks are being set up almost every month, and competition to attract top-tier traders, quantitative researchers, and trading system engineers in India is intense.
Despite regulatory pressure, global and domestic trading firms are continuing to expand in India. The Securities and Exchange Board of India temporarily barred New York-based Jane Street Group LLC in July for alleged market manipulation, but the firm has disputed the allegations and is seeking to overturn the order. Brokers providing high-frequency trading services, including Estee Advisors and iRage Broking Services LLP, said that while some clients are cautious, overall interest remains robust.
Bengaluru-based Optimus Prime Securities & Research has recently scaled up its high-frequency trading operations, and the Bilakhia Group is planning to enter the segment through Minix Holdings, according to sources. Bloomberg also reports that Citadel Securities, led by billionaire Ken Griffin, recently hired an options trader in India and plans additional recruitment. The Miami-based firm opened its Gurugram office in 2022 and now has more than a dozen employees. Citadel, along with Tower Research, has also acquired minority stakes in India’s National Commodity & Derivatives Exchange Ltd.
Recruiters note that many firms are hiring interns from top engineering schools, including the Indian Institutes of Technology, offering compensation far above standard market rates. These offers were made before the Jane Street ban but after the broader crackdown on options trading.
The rapid evolution of trading technology is forcing firms to be more agile. By the end of March 2025, 70 percent of equity derivatives trades by value were executed by algorithms, up from 60 percent three years ago. Rajib Borah, CEO of iRage, said that strategies that previously yielded profits for six months now work for only about two, requiring faster adaptation to maintain an edge. He added that as more firms exploit opportunities in India’s derivatives market, “alpha decay”—the loss of an investment strategy’s effectiveness—will accelerate.
