More Risk, Less Speed: Hudson River Mints Billions Slowing Down

Finding an edge in the cutthroat world of electronic market makers usually means moving a split-second faster than the competition. Hudson River Trading found another one by slowing down.

The high-frequency firm is increasingly holding positions for days and even weeks, embracing more risk as it battles industry rivals including Jane Street and Citadel Securities, the market-making sibling of Ken Griffin’s Citadel hedge fund. It’s also adopting high-touch methods — think humans picking up the phone — to handle more retail brokerage orders and push further into the debt market.

The result? The New York-based outfit, which deliberately maintains a low profile, has quietly morphed into a powerhouse among ...