Money, speed and Aperam
Last week there were a lot of happy folks around in the Mittal crowd, largely thanks to an anonymous big spender who apparently didn’t read the manual (or the wrong one). Some fingers point at Timber Hill or Sig, but we will never discover where to send the flowers.
Anyway, the Aperam spin-off has been trading for a few days, and this monday the options were launched as well. It isn’t easy to quote options on stocks without a trading history, and interest among market makers to act as a liquidity provider is very thin.
As little as three market making firms have signed for quoting the Aperam’s – with Caerus feeling confident to combine two roles as a Ccompetitive Market Maker (cmm) and Primary Market Maker (pmm) together. The other half of the quote depth are are Nino (cmm) and 323 (pmm). Curious wheter or not some trading will emerge in those Aperam’s.
The flash crash
The flash crash didn’t occur during European trading hours, but nevertheless it was an astonishing what-the-hell moment. Dutch television produced an interesting short documentary with the title “Speed & Money : inside the black box”. It’s available for the iPad as well, for free in the app store . It’s mainly English spoken with Dutch subtitles. If you’re waiting for a new iPad version, here’s the regular online version. For old times sake, here’s Jim Cramer again covering the flash crash.
The guy who fuck it up in MT was a PMM not a CMM.
Btw at 10:00 the quotes on AP in a 20 delta call feb11 was 0.8 wide….
What does that equate to in vol points?
@12:21 duh, and around 9:01 the screen was empty. You expect them to start quoting with a 2 cent spread from the beginnng? No HV at all, volatility could be 30. Or 50. Glad I don’t have to quote them 😉
Re: Btw at 10:00 the quotes on AP in a 20 delta call feb11 was 0.8 wide….
if u think thats wide, why dont u come and start diming and be the winning market maker ..
why not just use mittal vol to start with
Hi I am new. How do you get a job as an Aperam market maker?
Spreads in Aperam have collapsed to 10-15cts…..new dead class.
Oh shit!
I forgot to restrike my volatility curve and hedge my restrike delta – and the stock just tanked.
And I was short restrike gamma. Although my restrike charm was acting in the opposite direction, and it counteracted my restrike theta.
All in all, my restrike vanna and volga saved the day and caused me to lose only 100 grand.
Phew.
Its hard managing pseudo greeks sometimes!
@11:27
what? you mean get a job at tibra?
Re: what? you mean get a job at tibra?
Whats wrong with diming ? how else are you going to be most aggressive .. of course you can’t be one trick pony with being aggressive all the time !!
I just think it’s hilarious that people blame their competitors for not making money themselves!
Re: Its hard managing pseudo greeks sometimes!
LOL !??!
Mooie doc van Tegenlicht. Bizar om te zien dat de SEC en de NYSE/Euronext een ongelijk speelveld toestaan m.b.t. snelheid van informatieverstrekking. Sterker nog……het lijkt erop dat ze oncontroleerbare handel faciliteren!
Ministerie van Financiën….NMA…….grijp in !!!!
you’ve been brainwashed by your employers…small piece of big pie can satisfy your hunger better than 100% marketshare at sheets.
It isn’t wrong the SEC allows it, just that they don’t get it is wrong..
CC
Nobody is commenting anymore in this forum
just write something negative about AO such as, their trading sucks and allard is already thinking about leaving the ship because he starting new business in south america, that should start things up
AO’s trading sucks and I heard allard is already thinking about leaving the ship, because he’s starting a new business in south america.
LOL ?!?
Teak rules !
No one making money. just buy deltas…!!!
I am applying to a market maker. Does it hurt my chance to pass the screening if I mention that I did an intern in equity research in a bulge bracket? Thanks 🙂
I think it will hurt your chances if you ever use the term “bulge bracket”.
real?! may I know why? So, I should just exclude it from my resume or put the bank’s name?
Putting the bank’s name should not do you any harm. Not sure if putting the term “Bulge bracket” will hurt you, but then again reading resumes is a very subjective topic.
being able to calculate fast wouldn’t hurt your chances either. for the rest, who reads resumés in this business anyway?
lol thanks heaps! Hmmm, so this is very different from IB where the school one went to is very important..
absolutely. THis is not a business where the owners care about which school you went to.
Most MM owners were pit traders who never went to High school. Didn’t stop them from being rich.
As if the owners were the ones doing the hiring these days…
Which company should I apply to? I am a drop-out but I am very streetsmart.
Are you ballsy and chaotic?
I am chaotic.
I like to start fires.
Maybe liquid capital will hire me. We clearly have synergies.
man u guys all need to use the weekend to get laid .. taking out all your frustration on this blog is just very selfish..
@ 8:42 KFC is always looking for staff. Try them!
cool, thanx!
I sure wanna be your colleague