Why This Ex-Quant Quit a $10B/Day Job to Build a 24/7 Stock Exchange | QFEX, Annanay Kapila
In a Nutshell
Annanay Kapila, ex-quant at Flow Traders and Tower Research handling $10-100B daily, quit high-frequency trading's "golden handcuffs" due to its exploitation of market flaws and zero societal value, launching QFEX—a 24/7 global stock exchange for fairer, efficient trading via streamlined clearing and transparent low fees. Inspired by FTX's innovations (despite SBF's crimes), he co-founded with ex-Citadel engineer Josh, raised $95M pre-revenue from General Catalyst and Next Venture Partners post-Y Combinator, emphasizing massive scale over quick exits. Key takeaways: Quant finance traps talent in wasteful pursuits; build life's work for impact, not bonuses—ask if you'd proudly tell your kids about it or if it'll last 5-7 years.
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Worked as a quant in high frequency trading, responsible for strategies handling $10 to $100 billion a day—roughly the GDP of France. Earned big paychecks but felt like wasting life. High frequency trading exploits market inefficiencies due to structural design flaws in existing markets. People in trading focus on making money for big bonuses.
Founder and CEO of QFEX. Previously in quant finance sector, realized financial markets infrastructure is broken. Building next 24/7 global stock exchange to revolutionize trading.
Raised from two major funds: General Catalyst and Next Venture Partners at $95 million valuation while pre-revenue. Only point in raising venture money is to be truly massive, making it hard for VCs to say no.
Born in India, moved to UK, studied maths at Cambridge University. Growing up not wealthy, quant trading job paid a lot. Had option for PhD but money too good to pass up. After Cambridge in 2020, worked at Dutch HFT firm Flow Traders for a year, then headhunted to American firm Tower Research Capital for almost 3 years.
As a quant trader, first thing upon waking: check work laptop for how much money made that day. Everything data-driven, trading from data, not talking to people.
Analogy for quant finance: like running a car dealership—buy cars slightly lower, sell slightly higher, profiting from high volume. S&P 500 future on CME trades $500 billion a day, more than GDP of any country.
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