The quitter in the illiquids
4 comments / January 28, 2010
The small market makers of Euronext have some curious complaints. Liquidity providers in the illiquid and quiet stock options like BAM, Corio, Fugro and Aalberts are upset. The major complaint is the sheer lack of traded volume.It’s really quiet in the quiet stocks. That sounds the same as an eskimo complaining about the freezing temperatures in the polar circle. Nevertheless, this anonymous market maker announced in the newspaper Financieele Dagblad to consider quitting his pmm (or cmm) license and move on to the liquid daily and weekly AEX options.
Munnik Options most likely
Tried to identify this firm quoting these four illiquid stocks, but Euronext successfully barred this attempt by messing up the ELPS sheets on their website. Joost or Alan, please have it fixed and show us the liquidity provider list. In the mean time, I would place my bets on Munnik Options as the quitter in the illiquids.
Heavy volume in daily AEX options
The daily and weekly casino in the index options are seriously liquid these days. Some 22.000 daily contracts are traded every day, and an additional 10.000 contracts in the weekly’s. That’s a very heavy trading volume compared to the 80.000 traded in the regular index. Enough room left for some former niche market makers.
I can't find the article, can somebody post a link?
or Calimero
I do not see the news value of this…that is why they call it illiquid classes !
I think the trader mentioned is Holden Caulfield from JDS trading. He's big in illiquid stocks.