The one lot trader in the index
123 comments / March 24, 2010
Sometimes there’s a serious news story on the Amsterdam derivative markets. Developments within trading firms, stockexchanges or some legal wars. This time it’s a little different. There’s nothing I have but question marks. Received some mail with questions on the one-lot-trader who’s dominating the AEX index options market in the front months, as well as the weekly and daily options.Apparently some algorithm trader is having an ultrafast piece of software hitting and lifting orders with an electronic eye. Odd enough, it’s executing its trades with a size of just one lot – but at such speed it seems to be dominating the market. Transactions are filled with partial trades.
Nobody has yet been able to figure out what, why and how they’re doing it – and who it is. One could argue if it works for one lot, it could be done for a bigger size as well. But that doesn’t really seem to matter as the one-lot-trader captures a high market share anyway. At least some readers should know what’s going on – enlighten us in the comments!
may be the new MMs(former vdm teams) are testing..
would be more interesting to trade when this 1 lot guy wil come up with big size quotes and same hit-lift frequency..
Are new MMs trading or they r still under start-up phase ?
I will ask the Exchange who it is.
No need to look anymore – it's me!
Case closed.
Maybe the new MM are testing, but this one lot guy really dominates the market – hence it isn't one of the new firms.
Really curious as well. In the Daily options AEX I see this guy being the fastest in the market, taking everything.
it is Socgen
It is Cees Smit's One Day Trader
It's an auto-fitting Skew algo, when it hits anything (or gets hit/lifted) it will change the curve somewhat.
it's SiArb.
http://www.veb.net/content/HoofdMenu/Acties/VanderMoolen/actieartikelenVDM/verweerzwpa.aspx
Yeah, it's a SiArb!
Tested in the Large Hardon Collidert
re: "It's an auto-fitting Skew algo, when it hits anything (or gets hit/lifted) it will change the curve somewhat."
I am surprised it took so long. We had a system to autofit and to keep inventory (greeks + some custom 'greeks') small more than one year ago at Saen. It worked well in simulation and live market. Somehow senior management never got really interested to invest some resources into it.
With the current regime, I would be surprised if any of the knowlegde is still available at Saen / All Options.
The Small Option Collider?
lachen allemaal, maar welke partij is het nou echt die hier achter schuil gaat?!
1 lot? Sounds like All Options! Oh wait… controlling the market… no then definitely not All Options lol
mako
it is all options, 100%
what makes you say that 3:35PM?
It is not a local firm.
he is testing his strategy… it is common to use 1 lots in this situation.
The one lot strategy normally is SG or BNP Arbitrage, a lot of times they quote like that in new markets when they are not sure about their princes or strategy or they want to test the vola of the competitors and see how aggressive are the others market makers eye.
i'm all upset: my comment about skippy doing the goat has been deleted by amsterjacktradert. you censor, you! and the very next thing you do is comment anonymous on your own blog!
"Anonymous said…
lachen allemaal, maar welke partij is het nou echt die hier achter schuil gaat?!
March 25, 2010 11:52 AM"
could have been more subtle, jacko!
Anonymous said…
It's a goat!
March 25, 2010 10:13 AM
Anonymous said…
it's skippy taking the goat from behind
March 25, 2010 11:37 AM
Re :The one lot strategy normally is SG or BNP Arbitrage, a lot of times they quote like that in new markets when they are not sure about their princes or strategy or they want to test the vola of the competitors and see how aggressive are the others market makers eye.:
Nah, this one lot thing has been going on for half a year at least. And trading a lot! No testing system.
i called the exchange and they told me they do it to provide liquidity to the retail people in holland
>i called the exchange and they told me they do it to provide liquidity to the retail people in holland
the exchange! what can i say? nyse euronext is the most customer unfriendly exchange in the whole world. that's what i can say.
What does "Skippy taking the goat from behind" mean?
ALL OPTIONS!!!!!
it,s goldman sachs
It's me, otherwise I constantly miss the future hedge. Those Bastards always know where my futures are in the market
kakkerlakken
Allard Options
it can't be AO, all the knowledge necessary walked out over the last 6 month.
Maybe optiver testing something with TOM
it's not testing. testing is one at a time, not a machine gun.
It is a Van der Moolen box someone forgot to turn off/steal.
its all options
it's, it's, it's… I don't know 🙁
sorry, it is just my mom. i told her to stop, but when i initially told her a bit about options trading and that stuff, she totally got into it and now, does not want to quit it.
say 'thanks' to your mom from me, we had a great night last night.
duyfken
what does duyfken meen?
duyfken is a vis
It can´t be AO, they are to stupid to have a strategy of this kind running!
they've been going at it for over a year now! i was trading the AEX a while back, and that guy continuously irritated the crap out of me because whenever he hit me it was always a bad trade.
the guy who said its a skew fitting algo is correct. harder to implement than it sounds tho, could never figure out how he does it so fast.. i am also pretty sure its a smaller firm that does it, i know people who work at most of the bigger firms and they don't know who it is either.. tho to be honest, i don't really know anyone from All Options, but i doubt its them..
whats up wth IWB?
IWB Management wants tot buy out IMC
Announcement before or after April 1st?
I'd like to short them both.
I'd like to short 323trading
IWB is the broker for those 1 lots. They get paid per transaction.
duyvken is a vis?
i thought imc was a vis?
duyvken = imc???
>duyfken = imc???
Boontje krijgt beter Loontje
What is duyfken, is it a trading firm?
Do they need traders?
Actually it could be Duyfken, they are a very sophisticated firm.
Or it could be Deep Blue Capital.
Its not 323 etc, they likely have no idea how to do something like this.
@1.35
i dont know these 2 companies u mention, are they dutch firms? who is behind them?
323 = lacal firm, founded by jan bos and eelco de groot
local
ns bedrijf
323 Trading is opgericht op 3 februari 2003 door Eelco de Groot en Jan Bos. Beiden zijn in 1996 begonnen op de beurs als optiehandelaar. De organisatie is zeer professioneel, jong en ambitieus en houdt zich bezig met handel in financiële producten op de verschillende Europeze beurzen.
Het bedrijf telt een 15 enthousiaste medewerkers. De structuur van de organisatie is plat te noemen waarbij een handelaar al snel grote verantwoordelijkheid krijgt over de producten die hij handelt. Er wordt gewerkt in teamverband. Dit betekent een nauwe samenwerking en directe communicatie om het resultaat te optimaliseren. Middels sportieve competieties zoals tafeltennis en tafelvoetbal wordt er naar gestreeft om de teamspirit hoog te houden en de nodige ontspanning te brengen tijdens de werkdag.
323 Trading heeft lidmaatschappen op de beurzen van Euronext.Liffe Amsterdam, Parijs, Londen en Eurex/Xetra (Duitsland). Op deze markten zijn wij “Market Maker”. Dit betekent dat wij koop- en verkoop prijzen afgeven in tal van verschillende financiële producten waarin gehandeld wordt.
Op basis van een scherpe prijsstelling genereren wij onze handelsresultaten. De doelstelling is om inefficiënties in de markt uit te arbitreren, waarbij de handelsposities goed beheersbaar blijven.
En hier nog wat weetjes:
Facts and figures about the most beautiful spring garden in the world:
•Has won prizes as Europe’s most valued attraction
•Keukenhof is unique and famous throughout the world
•It is one of the most popular attractions in the Netherlands and has clocked up more than 44 million visitors in the last 60 years
•It is the largest bulb flower park in the world
•It covers an area of 32 hectares 4.5 million tulips in 100 varieties
•It is the most photographed place in the world
•There are 15 kilometers of footpaths
•It is the largest sculpture park in the Netherlands
•The bulbs are supplied by 93 Royal Warrant Holders
•7 million flower bulbs planted by hand
•More than 2,500 trees in 87 varieties
•Walk of Fame with tulips named after famous people
Leuk he
The only perfect hedge is in a Japanese garden.
please remove the "Keukenhof"-comment
can we stay on topic please?????
MARCH 29, 2010 2:55 PM
must be jan, or eelco… the last one most likely
didnt those guys at 323 used to work at aot?
I heard they werent very good back in the day either ….
who is behind deep blue and duyfken?
http://www.keukenhof.nl/5/facts-and-figures/
•Keukenhof is paying bonuses to their employees – where 323trading does not
Diep bloe is het pensjoenfons van Roger Hodeniejus en Jan fan Kuik fan Flo
Duifje is van Gert Bijker met zijn friendje Dennis en van Reinout Snuffert
hey 5.27pm ben je dronken ofzo? Jij zit zeker in Australie of Hong Kong he!!
No bonuses being paid this year at 323 trading, and rumour goes that a couple of traders left / are gonna leave.
What are Jan and Michiel (IWb) going to pay for themselves to Rob D??
there are bonusses being paid at 323; one of the few firms making profit over 2009!
Rumour is true….3 traders left 323trading
@ 12.26 PM
Do you mean bonusses or bonusjes?
bonusjes…
and BONUSES to the management 😉
Bob, I smell a new topic.
now back to IWb! What's cooking?
Ik kreeg tot twee keer toe "No Comment" toen ik ernaar vroeg
No comment
has getco started playing in european options markets?
dude….getco has a subsidiary which has been trading euro markets for years.
the one lot is an skew algo, optiver is gonna use on TOM
I think it's calimero, because they is big and i is klein. And it's not eerlijk.
hiep hiep hoi, Calimero
bestaat dat nog dan, calimero? dacht dat ze allang gestopt waren.
bestaat nog steeds – hoewel ze het beter Bakker Brothers zouden kunnen noemen
who is bakker brother?
the fabulous baker br…
>The trading houses are not directly consider redundancies. But according to insiders, this can change if market conditions over the years not better. According to the chairman of IMC trading Rob Defares the consequences incalculable. "It's less than previous years, but historically it is not too bad '.
From Financieele Dagblad (6/Apr/10) through Google Translate.
I think Defares is referring to how he fired many historically already.
^– redundancies = forced layoffs
So: nice atrium (dealing)room for rent in WTC; available soon.
How big ?
whats atrium ?
who's IMC?
IMC stands for Internet Mail Consortium, they specialize in internet services to companies…
no wait…it's International Medical Corps, a non profit humanitarian organization…
oops..sorry, my mistake…it's Indipendent Media Center, or maybe Irish Music Course or Indian Mother Chut!!!!!!!
I dont know…what is IMC and what do they do??
it`s me
checking dime machines, creating liquidity.
I thought the fab baker boys are gay
lol, u guys… so funny…
So all traders become jobless? Anyone thought about that? Computer power and nerds will concur you all !
Thankfuly my new colleagues are computer-nerds, and I'm dominating them!
Kees and Nico *are* gay, everybody nows that!
(Anonymous 10:43 PM) is also gay, and a wannabe nazzi.
wannabe?!
nazzi with double z?!
http://en.wikipedia.org/wiki/Faggin-Nazzi
it is Flowtaders
who is 'Flowtaders'?
Rogier in the house…
Rogier. Is he not ex- VDM ?
Ex-optiver
http://www.z24.nl/bedrijven/finance/artikel_95912.z24/De_snelste_beursbink_is_een_computer.html
That Rogier guy looks like he's a HEAVY user of cocaine.
Yeah, and like he spent all his money on that instead of the barber
nice guys real nice
Flow has done pretty good last years. Respect!
what's the definition of 'pretty good'?
@ BKT:
A lot of companies did well in the last few years. How did they do last year and where are they now? I would be very surprised if they maintained the profits mentioned in the web article.
what's the definition of 'pretty good'?
Of course 2008 was a very good year for the most of us.
I'm not an insider at flow, but since Roger started solo a few years ago i think he has done pretty well.
10 miljard is pretty good !
It sounds like a fixed income trader comment, refresh some quotes
I really do think I know which company this is – but you'll never believe me. I don't work there now – but am pretty sure as we threw millions into dev but our program was stuck in testing due to back-office issues. I don't think they can scale it yet, but when they do – it's a winner.
Wie? Who is it then?
I used to work with saen – and they were investing heavily in an algo development. But then they were taken by alloptions. I think it the same program in development. But hasn't been upscaled yet.