₹60 lakh for 2 months: HFT firms hike intern pay to attract India’s top engineering talent

High-frequency trading firms in India are offering record pay to attract top engineering students, with some internships now paying tens of thousands of dollars for just two months, according to a report by Bloomberg.

The sharp increase comes as firms compete for quantitative talent at a time when tighter regulations have put pressure on derivatives trading.

Gurgaon-based Quadeye is offering interns $31,346 a month (₹29.86 lakh), according to people familiar with the matter. The firm is paying $62,959 (₹60 lakh) for a two-month internship, four times what it offered a year earlier, the people said. They asked not to be identified because the details are private.

The jump in internship pay shows how intense the competition has become for quantitative talent. These engineers develop mathematical models, build trading strategies and use technology to identify profitable opportunities and execute trades at high speed.

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Graviton Research Capital LLP has  also sharply increased its pay for interns. The firm is now offering about $52,466 (₹50 lakh) for a two-month stint, up from around $16,789 (₹16 lakh), according to the people.

Among global players, Amsterdam-based IMC Trading BV has doubled its intern package to $52,466 (₹50 lakh), while Optiver Holding BV is offering $62,959 (₹60 lakh), the people said.

The compensation is for two-month internships offered to students from India's prestigious engineering colleges. For comparison, the median annual pay for post-graduates from the Indian Institute of Management Ahmedabad was roughly ₹35 lakh ($36,726) last year.

Quadeye, Graviton, IMC and Optiver did not respond to emails seeking comment.

“There is increasing aggression from global HFTs to hire straight from campus,” said Daniel Vaz, a partner at recruitment firm Aquis Search. Companies prefer to train young engineers from the ground up rather than recruit them later, he said.

Tighter rules weigh on derivatives activity

The hiring push comes as India's derivatives market faces pressure from tighter regulation. Reserve Bank of India rules have affected derivatives activity, while India's stock market has also lost favour with investors.

The average daily notional turnover for futures and options listed on the National Stock Exchange of India Ltd., the world's largest derivatives exchange by trading volume, fell to a 17-month low in July.

A study published by the market regulator in August showed that proprietary trading firms, including HFTs, saw their gross profit fall 3% in the 12 months ended March from a year earlier.

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HFT firms expand beyond Indian equities

Local HFT companies are also moving into asset classes beyond Indian equity derivatives and expanding into overseas markets. This is adding to the demand for engineers and other workers with strong quantitative and technical skills.

“Global firms are not finding candidates with adequate depth in lateral hiring for junior to mid-level roles,” Vaz said.

With experienced talent harder to find, HFT firms are increasingly turning to college campuses to recruit and train young engineers early. The result is a bidding race for some of India's strongest quantitative and technical talent.