Anyone following this scene knows all the companies are leaving the market making business. Reasons are not given, but it doesn't take stochastic calculus to guess it's an empty well. Everyone is throwing a 6 figure bucket at it and leaving with a bitter taste of dirt and clay.
This is one the reasons I quit as well. Even though work is interesting, the general sense I got was that there are too many players trying to chase the same little pot of gold. Also, it is getting fairly easy to setup a basic execution infrastructure and the barriers to entry have reduced quite substantially as a result.
The good hedge funds are doing extremely well with algos. Graduating students from CS/Math/Stats have a great career here, not to mention the opportunity to do some really interesting work and make a lot of money.
This blog is maintained pretty well, http://www.amsterdamtrader.com/