New brokers and traders at Beursplein 5 (update)
Outsiders usually have difficulty distinguishing a broker from a market maker, and this time it’s no different. Strange thing is even Euronext is confused. Every firm is a trading firm. Wouldn’t surprise me if some people at Euronext have the title “trader” on their business cards themselves.
Anyway, the trading floor at the exchange building was deserted after All Options retreated to its headquarter at the Herengracht. No financial worries for Euronext, as All Options has a contract to pay 50k monthly until december 2012, but it doesn’t give the same important feeling : hitting the opening bell above an empty office.
As Scrocca and Flow Traders are perfectly happy at their current – somewhat remote – locations, the trading floor will be split up between four firms. Building large walls would harm the atmosphere, so walls of glass will provide the privacy between the new renters. Not only for privacy, it will also function as Chinese walls. The regulatory watchdog won’t permit proprietary traders setting next to wholesale brokers. Euronext is explicitly speaking of 100 traders to fill the trading floor. Sold. Anyway, the new tenants are:
- Leopark. A small option market maker consisting of old school traders from the open outcry era. Trading some minor option classes such as Wereldhave, but have a good reputation in the AEX index options. Moving in from another small office inside the exchange building.
- AFS. A broker. Earning a fee when executing large blocks of options between financial institutions. Doing trades with market makers, but never taking on a position (unless by accident). Their head of research and news, Jacob Jurg, has been awarded awarded the nr. 1 analyst ranking in the 2011 Thomson Reuters Extel Awards; Derivatives Trading/Execution.
- Nyenburgh. Trading in the delta one spectrum. Daytrading and ETF arbitrage, although moving at a slower pace than Flow Traders – it competes successful as a small firm against much bigger rivals in the ETF space.
- Mijnbroker.nl. A new contender for Binck, a retail broker with apparently competitive rates.
The press release also states “Criterion Arbitrage & Trading” will be renting another trading floor. Never heard from them, and neither does google. But it turns out to be the new company from Gert de Rover – a well respected and former director at All Options. They will occupy the Obligatiezaal.
Other news (Optiver, Goldman Sachs)
Last week the class action against Optiver and the alleged oil manipulation scheme was stayed, again. The CFTC is pushing for a mediated settlement with Optiver. This civil lawsuit drags on for three years now.
Another interesting story on the mispricing of warrants in Hong Kong has been published somewhere else. Goldman introduced warrants and initially mistakenly priced them 100 fold too low. Thanks to a commenter we have a perfect summary of the story.
“On March 31 warrants linked to Japan’s Nikkei 225 index and sold by GS began to spike in value, because, it now seems likely, a single investor had noticed what proved to be a small but serious error in the settlement documents. Rather than settle at closing level minus strike level times index currency amount divided by exchange rate, the original documentation multiplied by the prevailing exchange rate. The substitution of a multiple sign meant in theory that the warrants were worth more than 100 times their intended value.
On April 21, GS announced that it would buy back the warrants at 110% of the higher of the price paid or the total buyback value of the warrants, plus an admin fee of HK$5,000 ($643).
In a letter seen by Euromoney, one investor claims to have lost time value while the warrants were suspended, that it is unreasonable that GS be able to dictate the terms of the settlement without negotiation; and that both the HKSE and the regulator have ducked responsibility and left the product issuer to decide how to proceed.“
Here’s a full copy of the original text in Euromoney on the warrant fiasco – kudo’s to commenter who scanned the piece.
First post! 😉
way to go man 😉
can somebody post that article? I cannot open it since I am not a subscriber to Euromoney.
i can scan it, but i dont know how to share images with the forum ..
mail it to jack?
done !
The derivatives trading market seems a very close-knit community. I’m wondering who provides their IT Support?
I know that firms in bigger financial centers will often outsource it, so what does a city like Amsterdam do when your tools go down?
I once had a phone interview with Tibra, but those bastards never invited me in to see them face to face! Now I spit on them as I pass by on the Singel (kidding).
Are you guys all on LinkedIn?
eh ?
90% of smaller trading firms use a company called Elevate for their IT. Very good guys.
http://www.tomtrading.eu/Press.aspx?id=29
how strange?! I added a comment yesterday eve which looks to have been deleted! hmmm. So to repeat myself – Dowson is in Sydney being cared for and his parents are living in Ilkley, England. So I hear…
we heard you now, stop spamming ..
Spamming? You cretin. I know the guy, don’t particularly like him-he’s swindled a lot of people out of a lot of money. He deserves everything he gets. The CFTC are now in the process of bringing about criminal proceedings against him-working with the Australian authorities. So I’ve let on that I know where he and his family live. I think people are interested in this. But then you’d know that wouldn’t you Chris?
You’re better off emailing this information to the CFTC directly rather than doing it in public.
First of all, if you accuse someone of swindling a lot of people out of a lot of money, you better back it up.
Second, where he is at the moment is something that has come up several times already on this website, so you’re not exactly adding anything.
‘he’s swindled a lot of people out of a lot of money’
who did he swindle and how ?
‘where he is at the moment is something that has come up several times already on this website, so you’re not exactly adding anything.’
yah any color on what is he upto in aussie .. there was rumours he was teaming up with rob to do tibra 2 ..
“Dowson is in Sydney being cared for”
How is he being cared for?
The generally accepted $1million proceeds for Optiver from the Hammer Trade is pretty small fry in the list of trading scandals, known and unknown.
It looks increasing obvious that Optiver, as a “foreign speculator”, has been set up as the fall guy for the real market manipulation that goes on in the oil and commodity markets conducted by GS and the other investment banks at the behest of the Fed.
Also, if I were you, I would stay away from visiting Ilkley, because although Chris is a bit of a wus, I know full well that some of his friends and family members are the opposite, and it is a close knit community.
‘The generally accepted $1million proceeds for Optiver from the Hammer Trade is pretty small fry in the list of trading scandals, known and unknown.’
yah Optiver is bit small town in this aspect, they thought 1 mil is great, but they didnt realise they are operating under CFTC who could really fuck them up for much more..
‘It looks increasing obvious that Optiver, as a “foreign speculator”, has been set up as the fall guy for the real market manipulation that goes on in the oil and commodity markets conducted by GS and the other investment banks at the behest of the Fed.’
Optiver broke rules and lied about it .. so dont feel any sorry for them .. and as for GS manipulating market, get real, markets are very much a rigged game, as long as no rules are broken, so dont feel sorry for those stupid investors, they have the option to either pack up or stay and get fucked .. they do seem to enjoy anal particularly ..
@12.52, ‘i’d stay away from Ilkley if I was you’ ? I never said I was going did I? I simply know there are a lot of people that would be real interested to know where he lives and where his family lives if they were trying to get hold of him.
The guy was a principal player in swindling people out of money. He’s a crook and a criminal. Anybody who’s unsure as to what his part in all of this simply needs to google his name with Optiver to find out exactly what he did…
@10.58, this is a twofold answer. I know he’s being treated for stress at the minute by his Doc -suffering from depression. He’s on the payroll ‘from home’ with Optiver Aus. It must be real stressful making money but not being able to enjoy it being a wanted man…
@8.31 – stay with the programme bud. Optiver’s on the rack with the CFTC and the three main players of which Dowson is one are also being chased for prosecution. You only need to check out Google for the famous schoolboy quote that Dowson is quoted as saying. You’re insulting my intelligence. Are you even in the right conversation?
‘The guy was a principal player in swindling people out of money. He’s a crook and a criminal. Anybody who’s unsure as to what his part in all of this simply needs to google his name with Optiver to find out exactly what he did…’
i googled, i only see him banging oil close and making a million off it .. thats it .. thats nothing compared to what swindling goes on in the market .. talk in billions and you’ll see how retail/corporates gets robbed by wall street ..
‘ I know he’s being treated for stress at the minute by his Doc -suffering from depression.’
you sure on this ? Thats gay .. he should fucking man up .. what a puss ..
‘Dowson is one are also being chased for prosecution. ‘
there is no real chance of him being in jail, right ?
‘You only need to check out Google for the famous schoolboy quote that Dowson is quoted as saying. ‘
can you tell us which quote are you refering to ?
Bunch of cowards stop this nonsense . Optiver will maybe pay a 10 to 15 mil settlement . So what ?
@ Bunch of cowards stop this nonsense . will maybe pay a 10 to 15 mil settlement . So what ?
Its not about how much money. Its about blatantly making a manipulative plot. How are the other two crooks able to hold jobs elsewhere.
Who will trust Bastiaan and Randal in the world of finance ?
Dat is echt een beetje aan de lage kant. Er is een groot verschil tussen een geval van handelaar die iets namens het bedrijf doet en dit geval waarbij het beleidsmatig werd uitgevoerd incl bouwen software en stimulaties van bovenaf. Een iets hoger percentage van de winst zou logisch zijn. Of een jaar geen CME, als er geen settlement wordt bereikt.
The software (Hammer) is incidental to the strategy as far as I can tell. All it did was make sure that the orders in the TAS were at the top of the queue.
If the orders weren’t at the top of the queue, then they would have no TAS position to “bang the close” with.
After the whole incident was over they ‘scrapped’ the hammer tool and replaced it with trainees forcing them to stay late in the evening putting orders in regardless of the ongoing case.
Some light on the progress of the case.
http://www.reuters.com/article/2011/06/29/us-cftc-optiver-oil-manipulation-idUSTRE75S3LR20110629
“Some light on the progress of the case.”
Old news. It took Reuters two weeks to get that to press.
@4.33 ever heard of innocent until proven guilty?
Just like the optiver vs tibra case: things might look pretty obvious to you, but that doesn’t make someone guilty yet
“@4.33 ever heard of innocent until proven guilty?”
LOL! When the CFTC have the phone recordings on their website, it’s a bit of a stretch to say that Optiver is innocent. Have you actually listened to the tapes?
Ok so now Tibra and Optiver are guilty ?
I am actually wasting my time by replying to such an idiot as you, but you cannot draw a completely different case into this frame. Optiver are absolutely guilty and we are now waiting on the size of the penalty.
“…After the whole incident was over they ‘scrapped’ the hammer tool and replaced it with trainees forcing them to stay late in the evening putting orders in regardless of the ongoing case…”
Taking a leaf out of the Liquid playbook huh…?
no just some common sense,
Did anybody hear anything on how All Options is doing now? Did the reorganization work?
All Options is doing much better than a year ago. In fact they are considering hiring new traders and opening up foreign offices so Allard can blow the last of the Altana money.
@8.46 – you only see him banging an oil close and making a million off it? This reply probably came from Chris – as he’s at home recuperating, he’s gotta lot of time to shout his cause. He’s a crook and second rate criminal – end of.
@8.47 – yeah, he’s being treated for depression, bless him. He hangs out with a few English people out in Syndey. Doesn’t realise one of them knows me. He also doesn’t realise most people can’t stand him as he tries to impress with the trappings of his criminal activities. Nasty piece of work.
As I learn more folks, I’ll post it here…
‘He’s a crook and second rate criminal – end of.’
Man this is getting tiring, give more details or shut the fuck up ..
‘He also doesn’t realise most people can’t stand him as he tries to impress with the trappings of his criminal activities’
everybody knows he is a show off .. get over it ..
Is this the hot chick who is da cfo at all options? http://www.bridgetharenhair.com/
no ?
you are a bigger wuss than downson.. either talk facts or get the hell out of here .. no one needs your propaganda moron,
no, its not chris, i have seen the guy and heard about him from other people,
you keep calling him low-level crook without giving any facts, how stupid do you think audience here is ?
anon, thanks for the tip on Elevate.
Jacob is the best
The article is informative, but probably the worst English grammar I have seen in a long time. It really is Dutch and literally a direct translation. Come author, you can do better then that!
The pot calling the kettle black…
It’s ‘better than’, not ‘better then’.
[…] news from Beursplein 5. One of the three firms on the central trading floor has to shut the doors. Mijnbroker.nl is history as of January […]