Highly profitable high-frequency trading franchise Good capitalization Good operational history Operational risk Reliance on variable principal trading revenue Limited sources of contingent liquidity The stable outlook reflects S&P Global Ratings' expectation that Hudson River Trading LLC (HRT) will maintain supportive operational performance, capitalization, and liquidity as it continues to expand its trading operations and risk. Specifically, we expect the firm will maintain profitability, a risk-adjusted capital (RAC) ratio above 10%, a gross stable funding ratio (GSFR) above 100%, and a liquidity coverage metric (LCM) above 120%. Over the next 12 months we could lower the ratings if: The firm grows market risk more rapidly than expected, It suffers a material operating loss, or otherwise materially depletes its liquidity, or The
