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Tag Archives: market making

The Spread – Week of 6/25 to 6/29 Video,video

Looking for something to take your mind off of the summer heat? Well, we have a GEM of a “Spread” for you.  (Yes, we talk about Geneva Energy Markets this week.)  The following are stories referenced in this week’s episode:  Business Insider – Goldman Sachs has created a new team to take on high-speed traders like Virtu and Citadel at their own game Dealbreaker – Behold, The Ultimate Wall Street Summer Dance Video Bloomberg – Top Oil Market-Maker Closes After ‘Damaging’ Regulatory Changes Bloomberg – Rare Shift in ‘Fear Gauge’ Shows Depth of Market Angst Bloomberg – Hedge Fund That Made…

Houndstooth’s long-vol ETF bet; GEM liquidates its books; Earnings worries Newsletter,Options

Observations & Insight Big World Cup Correction and other Miscellany SD – JLN Boy oh boy did I misread the Germany v. Korea recap. It was NOT at all novel that the previous World Cup winner was knocked out in the group stage. In fact, it’s the opposite. From the USA Today:: “Four of the last five winners of the previous tournament have now crashed out in the group stage the next time around.” I should stick to American football references I guess… (That doesn’t alter the fact that UBS’ and Goldman’s computer predictions were way off, though.) Speaking of…

No rejoicing yet over Volcker ; Options liquidity concerns Newsletter,Options

Observations & Insight Vela’s Plans Post-Acquisitions JohnLothianNews.com In this video from the 36th annual Options Industry Conference (OIC) in Amelia Island, Fla., Vela CEO Jennifer Nayar talks about where the company sees opportunity after its acquisition of OptionsCity and Object Trading in the summer of 2017. Watch the video here » ****SD: Other Vela news this week – Alexandria McGrath of Vela recognized as a Rising Star; CEO Jen Nayar also named Woman of the Year by Markets Media Lead Stories Why Wall Street Traders Aren’t Rejoicing (Yet) Over Volcker Rule Yalman Onaran – Bloomberg Wall Street has long derided…

VIX Isn’t Broke; CAT Privacy Bill; WMDs for next crash Newsletter,Options

Observations & Insight The State of Options Market Making in One Image; Happy 45th Anniversary of the Black Scholes Formula At the Options Industry Conference in Amelia Island, Fla., Trade Alert President Henry Schwartz gave his annual “State of the Industry” presentation. The presentation is always chock full of great graphs and information – the word cloud image above is always a favorite. In the picture, liquidity providers are sized according to their industry presence – the bigger the firm’s book, the bigger its name appears. Schwartz said Susquehanna is not sized to the same scale as the rest because…

Goldman exits options market making; Historic volatility; SocGen struggles Newsletter,Options

Lead Stories Goldman Sachs to Withdraw From Part of U.S. Options Market Brian Louis – Bloomberg Will stop serving as a market maker on U.S. exchanges; Traders struggling with high costs, low volatility in options Goldman Sachs Group Inc. will stop serving as a market maker on U.S. options exchanges, following others in exiting that business amid high costs, sluggish volume and low volatility. /goo.gl/hxa23m ****SD: WSJ here. What’s the tech angle? More bronze than gold? Other “Goldman struggles” news from Reuters – Goldman taps energy execs in bid to turn around commodities unit Historic Volatility Recently Dropped Below 1.7…

Vela to acquire Object Trading complementing its recent acquisition of OptionsCity; They’re The World’s Fastest Traders. Why Aren’t They Thriving?; Why Everyone’s Trading Volatility Newsletter,Options

Lead Stories Vela to acquire Object Trading complementing its recent acquisition of OptionsCity; Acquisition enables Vela to offer a comprehensive software and managed services solution across the entire electronic trading workflow Vela Trading Technologies LLC (Vela), an award-winning global leader in high performance trading, market data, and analytics technology, has signed a definitive agreement to acquire Object Trading, a global provider of a fully-managed Direct Market Access (DMA) platform, pre-trade risk controls, and analytics applications. /goo.gl/qzVNsV ****SD: Who’s going to be number three? My Spidey sense is tingling a bit. When Brian Cassin, Vela’s head of product strategy, spoke at…

Goldman-Backed High-Speed Trading Network Sold for $39.5 Million; The Dutch Have Solutions to Rising Seas. The World Is Watching.; HFT – Not so flashy anymore John Lothian Newsletter,Newsletter

First Read Eurex CEO Sees Plenty of Structural Growth Potential JohnLothianNews.com “We also see a lot of structural growth potential… If we look at the equity index complex, there is a clear trend of many asset managers moving to passive investment structures. We see that … on the derivatives side [adding] new liquidity pools to global index families.” Thomas Book, CEO of Eurex Frankfurt AG and Eurex Zurich AG, believes the exchange can take advantage of the opportunities presented by a changing European landscape. Low interest rates for a long time equated to low interest in Eurex’s fixed income offerings…

HFT – Not so flashy anymore; Vicious VIX; JPM Head Quant Warns Of “Catastrophic Losses” For Short Vol Strategies Newsletter,Options

Observations & Insight An Excerpt of Note Spencer Doar – JLN I am re-reading “Liar’s Poker” because…I don’t really know why — maybe it’s just summer instinct with all these reading lists floating around. Anyway, about a quarter of the way in, there’s a notable anecdote from Michael Lewis’ training program at Salomon: “‘When you trade equity options,’ asked my friend Franky, ‘do you hedge your gamma and theta or just your delta? And if you don’t hedge your gamma and theta, why not?’ The equity options specialist nodded for about ten seconds. I’m not sure he even understood the…

UChicago Midwest Trading Competition: The Next Generation Gets a Taste Video,video

On April 8, the University of Chicago hosted its fifth iteration of the Midwest Trading Competition, drawing 102 students from some of the most prestigious colleges and universities across the United States and Canada. The students got a chance to test their algorithms using Trading Technologies’ TT Platform in a variety of simulations involving pairs trading and options market-making. But the event was more than just a fun way for smart kids to strut their stuff using real-world technology and market data. It was a rare networking opportunity for the students and sponsors — some of Chicago’s biggest prop shops…