Tower Research Capital Software Engineer Interview Questions + Guide in 2025

Tower Research Capital is a high-frequency proprietary trading firm specializing in quantitative trading through advanced algorithmic systems.

As a Software Engineer at Tower Research Capital, you will be responsible for developing and optimizing high-performance trading platforms that cater to the evolving demands of algorithmic trading strategies. This includes architecting systems to minimize latency, designing market data interfaces, and enabling robust access to both live and historical market data. You will engage in coding, algorithm development, and system programming, primarily using languages such as C++ and Python, while also employing tools and methodologies like Git, CI/CD, and MLOps for efficient deployment practices.

The ideal candidate will possess a solid understanding of data structures, algorithms, and operating systems, as well as a passion for creating resilient, fast, and efficient trading systems. A collaborative mindset is essential, as you will work closely with cross-functional teams and participate in the development of innovative solutions that drive the firm's success.

By following this guide, you will be better prepared to showcase your technical expertise, problem-solving abilities, and cultural fit during the interview process at Tower Research Capital.

The interview process for a Software Engineer at Tower Research Capital is structured and thorough, designed to assess both technical skills and cultural fit. The process typically unfolds in several key stages:

1. Resume Screening

The initial step involves a careful review of your resume by the HR team. They will look for relevant experience, educational background, and specific skills that align with the requirements of the role. This stage is crucial as it determines whether you will move forward in the interview process.

2. Online Coding Challenge

Candidates who pass the resume screening are invited to complete an online coding challenge. This challenge usually consists of multiple programming problems that test your coding abilities and problem-solving skills. The challenge is often time-constrained and may require you to demonstrate proficiency in languages such as C++ or Python, as well as your understanding of algorithms and data structures.

3. Technical Phone Interviews

Successful candidates from the coding challenge will participate in one or more technical phone interviews. These interviews typically last around 30 to 60 minutes and focus on your technical knowledge and experience. Expect questions related to operating systems, network protocols, and algorithms, as well as inquiries about your past projects and how you approached specific technical challenges.

4. Onsite Interviews

Candidates who excel in the phone interviews are invited for onsite interviews, which can be quite extensive. This stage usually consists of multiple rounds of interviews with different team members, including engineers and possibly management. Each interview will cover a range of topics, including system design, low-latency trading concepts, and advanced programming questions. You may also be asked to solve coding problems on a whiteboard or in a collaborative coding environment.

5. Final Interview with Leadership

The final stage often includes an interview with senior leadership, such as the CTO or a director. This interview may focus on your long-term career goals, your fit within the company culture, and your ability to contribute to the team and the organization as a whole. It’s also an opportunity for you to ask questions about the company’s vision and your potential role within it.

As you prepare for your interviews, be ready to discuss your technical skills in depth, particularly in areas such as algorithms, data structures, and system design. Now, let’s delve into the specific interview questions that candidates have encountered during the process.

In this section, we’ll review the various interview questions that might be asked during a software engineering interview at Tower Research Capital. The interview process will likely cover a range of topics, including algorithms, operating systems, network programming, and C++ proficiency. Candidates should be prepared to demonstrate their technical knowledge and problem-solving skills, as well as their ability to communicate complex concepts clearly.

Algorithms and Data Structures

1. Can you explain the difference between a stack and a queue?

Understanding fundamental data structures is crucial for any software engineering role.

How to Answer

Discuss the definitions of both data structures, their operations, and use cases. Highlight the differences in how they handle data.

Example

“A stack is a Last In First Out (LIFO) structure, where the last element added is the first to be removed. In contrast, a queue operates on a First In First Out (FIFO) basis, where the first element added is the first to be removed. Stacks are often used in function call management, while queues are used in scheduling tasks.”

2. Describe a time complexity analysis for a binary search algorithm.

Time complexity is a key concept in algorithm design.

How to Answer

Explain the binary search algorithm and its efficiency in terms of time complexity.

Example

“Binary search operates on a sorted array by repeatedly dividing the search interval in half. The time complexity is O(log n) because with each iteration, the size of the search space is halved until the target value is found or the interval is empty.”

3. How would you implement a hash table?

Hash tables are widely used for efficient data retrieval.

How to Answer

Discuss the structure of a hash table, including how to handle collisions.

Example

“I would implement a hash table using an array and a hash function to compute the index for each key. To handle collisions, I would use chaining, where each index points to a linked list of entries that hash to the same index.”

4. What is the difference between depth-first search and breadth-first search?

Graph traversal techniques are essential for many algorithms.

How to Answer

Explain both methods and their applications.

Example

“Depth-first search (DFS) explores as far down a branch as possible before backtracking, while breadth-first search (BFS) explores all neighbors at the present depth prior to moving on to nodes at the next depth level. DFS is often implemented using a stack, while BFS uses a queue.”

5. Can you explain the concept of dynamic programming?

Dynamic programming is a powerful optimization technique.

How to Answer

Define dynamic programming and provide an example of its application.

Example

“Dynamic programming is a method for solving complex problems by breaking them down into simpler subproblems and storing the results to avoid redundant calculations. A classic example is the Fibonacci sequence, where each number is the sum of the two preceding ones, and we can store previously computed values to optimize the calculation.”

Operating Systems

1. What is virtual memory, and how does it work?

Understanding memory management is crucial for system-level programming.

How to Answer

Discuss the concept of virtual memory and its benefits.

Example

“Virtual memory is a memory management capability that allows a computer to compensate for physical memory shortages by temporarily transferring data from random access memory (RAM) to disk storage. This enables larger applications to run on systems with limited physical memory and improves multitasking.”

2. Explain the difference between TCP and UDP.

Networking knowledge is essential for many software engineering roles.

How to Answer

Describe both protocols and their use cases.

Example

“TCP (Transmission Control Protocol) is a connection-oriented protocol that ensures reliable data transmission through error checking and correction, making it suitable for applications like web browsing. UDP (User Datagram Protocol), on the other hand, is connectionless and does not guarantee delivery, making it ideal for real-time applications like video streaming.”

3. What are the different types of scheduling algorithms?

Scheduling algorithms are fundamental in operating systems.

How to Answer

List and explain a few common scheduling algorithms.

Example

“Common scheduling algorithms include First-Come, First-Served (FCFS), Shortest Job Next (SJN), and Round Robin. FCFS processes tasks in the order they arrive, SJN prioritizes shorter tasks, and Round Robin allocates a fixed time slice to each task, cycling through them to ensure fairness.”

4. Describe inter-process communication (IPC) and its methods.

IPC is vital for multi-process applications.

How to Answer

Explain what IPC is and the various methods used.

Example

“Inter-process communication (IPC) allows processes to communicate and synchronize their actions. Common methods include pipes, message queues, shared memory, and sockets. Each method has its advantages and is chosen based on the specific requirements of the application.”

5. What is a deadlock, and how can it be prevented?

Understanding concurrency issues is important for system design.

How to Answer

Define deadlock and discuss strategies for prevention.

Example

“A deadlock occurs when two or more processes are unable to proceed because each is waiting for the other to release resources. Prevention strategies include resource allocation graphs, avoiding circular wait conditions, and implementing timeouts for resource requests.”

C++ and System Programming

1. What are the key features of C++?

C++ is a primary language for many software engineering roles.

How to Answer

Discuss the main features that distinguish C++ from other programming languages.

Example

“C++ is an object-oriented programming language that supports features like encapsulation, inheritance, and polymorphism. It also provides low-level memory manipulation capabilities, which are essential for system programming and performance optimization.”

2. How do you manage memory in C++?

Memory management is critical in C++ programming.

How to Answer

Explain the concepts of dynamic memory allocation and deallocation.

Example

“In C++, memory management is done using operators like new and delete for dynamic allocation and deallocation. It’s important to ensure that every allocation has a corresponding deallocation to prevent memory leaks.”

3. Can you explain the RAII principle in C++?

Resource Acquisition Is Initialization (RAII) is a key concept in C++.

How to Answer

Define RAII and its importance in resource management.

Example

“RAII is a programming idiom where resource allocation is tied to object lifetime. When an object is created, it acquires resources, and when it goes out of scope, it automatically releases them. This helps prevent resource leaks and ensures exception safety.”

4. What are smart pointers, and how do they differ from regular pointers?

Smart pointers are an important feature in modern C++.

How to Answer

Discuss the types of smart pointers and their advantages.

Example

“Smart pointers, such as std::unique_ptr and std::shared_ptr, manage the lifetime of dynamically allocated objects. Unlike regular pointers, they automatically deallocate memory when no longer needed, reducing the risk of memory leaks and dangling pointers.”

5. Describe the concept of templates in C++.

Templates enable generic programming in C++.

How to Answer

Explain what templates are and their benefits.

Example

“Templates allow functions and classes to operate with generic types, enabling code reusability and type safety. For instance, a template function can sort an array of any data type, making it versatile and efficient.”