London is rapidly solidifying its position as one of the world’s leading centers for quantitative finance, with several UK-based trading firms and hedge funds reporting record-breaking revenues that underscore the city’s growing dominance in algorithmic and data-driven investing.
Quant Firms Redefine London’s Financial Landscape
Leading the charge are algorithmic trading giant XTX Markets and quantitative investment firms Qube Research & Technologies and Quadrature Capital, each generating over £1bn in annual revenues according to recent UK filings. Their success marks a major milestone for London’s financial sector, especially as questions have persisted over the city’s competitiveness since Brexit.
Quantitative, or “quant,” trading relies on complex mathematical models, machine learning, and vast datasets to identify market inefficiencies and execute trades with minimal human input. Compared with traditional finance, these firms operate with leaner teams and benefit from lighter regulation — a formula that has made them some of the most profitable players in the global markets.
“London is absolutely seeing a quant renaissance,” said Raffaele Savi, global head of quantitative investing at BlackRock. “It’s the combination of world-class universities, a favorable regulatory environment, and a deep financial tradition.”
A U.S.-based hedge fund manager added, “It’s quite remarkable seeing London rival New York as a quant hub.”
A Legacy of Innovation and a New Generation of Firms
The UK has a long history in quantitative trading dating back to the 1980s, when firms like AHL, now part of Man Group, pioneered “trend-following” strategies. That first wave inspired successors such as Winton and Aspect Capital.
Today’s generation of quant firms has diversified beyond trend-following to include statistical arbitrage, market-making, and AI-driven trading.
- Qube reported £2bn in revenues last year — nearly seven times higher than in 2020 — driven by its focus on data-based market-making strategies.
- XTX Markets, founded by billionaire Alexander Gerko, uses machine learning to trade stocks, bonds, currencies, and cryptocurrencies. The company earned £1.3bn in post-tax profits in 2024, up 54% from the previous year, with total revenues hitting £2.7bn.
- Quadrature, founded in 2010, saw its revenues rise fivefold to £1.2bn between 2020 and 2024.
- G-Research, a leading London-based research firm, supports trading operations linked to its founder Peter De Putron, generating £712mn in research and IT service revenues in just 15 months.
Demonstrating the importance of data infrastructure, XTX is investing €1bn in a new data center in Finland, while Qube is building one in Iceland.
Talent Pipeline: From Campus to Trading Desk
London’s quant boom is fueled by a steady influx of highly skilled graduates from top UK universities such as Oxford, Cambridge, and Imperial College London. Unlike in the U.S., where engineering and computer science graduates often join big tech companies, British graduates are increasingly drawn to quantitative finance.
Quant firms actively nurture this talent pipeline through sponsorships, hackathons, and PhD collaborations, offering exceptional pay and flexible work environments.
“Only a handful of people from my class went into big tech — dozens joined market makers or quant hedge funds,” said a recent Imperial College graduate now working at a quant firm.
At Oxford University’s Institute of Quantitative Finance, director Alvaro Cartea said nearly all students go straight into trading firms, earning between £250,000 and £800,000 annually. “If you’re offered less than £250K, you’re kind of the sad guy,” he joked.
A New Era for London Finance
After years of uncertainty following the global financial crisis and Brexit, London’s emergence as a quant finance hub represents a powerful comeback.
“London had some cracks after 2008,” said Paul Rowady, founder of trading consultancy Alphacution. “Now we’re seeing a wave of incredibly smart and driven people transforming the city’s financial identity.”
With its combination of mathematical expertise, capital markets infrastructure, and entrepreneurial drive, London is not just keeping pace with Wall Street’s quants — it is positioning itself as their equal.
