Market share in Sweden
In the world of Euronext and Eurex the market shares of individual market makers are well hidden secrets. The only detailed information the exchange is willing to give you is your own market share. And all right, they exchange is willing to tell you how you rank among the rest. But if you’re number two, they won’t tell you who is number one. Or number three. In addition, Euronext is giving information on the market volume traded on massquotes, and your rank in there as well. Difference is you can see the other market maker’s market share in quote traded volume – but without identifying these firms.
The folks in Scandinavia take a different approach. The whole list of market makers is shown with the corresponding percentages. That is exactly what we’ve been looking for. Unsure to which extent the ranking is comparable to the whole market – but at least it gives us a clue. Apart from the derivative market shares there is another interesting goldmine available at the NasdaqOMX – the market share in stocks. Monthly, and yearly.
The NasdaqOMX covers five of those Scandinavian countries, but the only seriously traded derivatives are the Swedish index options. Other indices and stock options bear similarity with the Belgian market. The trading fun is in the Swedish index pit.
Optiver king of the Swedish index..
Market share alone won’t make you any money, but in terms of market share nobody comes close to Optiver. Broadly speaking Optiver has got an astonishing market share of 25%. Not just for one month, this is a steady result. Second and third in line are two vikings, but on the fourth spot we find Timber Hill. Didn’t trade as much as usual in August, which doesn’t count for Optiver’s long term buddies from Tibra. The Australians increased their market share substantially in a year.
Few places lower there’s Kyte and IMC – trading a lot less with a decent 5% but in another playing field compared with Optiver. At least they are playing, something which can’t be said on All Options. They completely walked of the pitch. Probably putting resources at work to defend their top spot in Ten Cate, Brunel and Mediq.
Please note the market share is calculated a little different. It’s not the number of contracts, but the traded value of the options. Doesn’t change much anyway. On average 50.000 contracts a day trade in the Swedish index.
..but IMC trading more stocks
The Scandinavian stock options seem to be dead, but that won’t stop several market makers from hedging their delta’s anyway. These are a few familiar and interesting names from the list of market share in the Nordic cash market.
Impossible to say anything specific on the kind of strategies at work – endless possibilities (of which of course also straightforward delta hedging on Eurex options on stocks like Nokia). Tibra isn’t a member of the cash market yet – checked the list twice.
For more details have a look at the source. Excel files from the north – market share in derivatives and cash.
“But if you’re number two, they won’t tell you who is number one. Of number three.”
Jack, you’ve got your English and Dutch mixed up:
Of = Or
> Thanks
Of = Or
on qwerty, F is right below R… probably fat finger typo
Deep shit for Euronext today, quoting impossible in several stocks and index
yes indeed, they fucked up again
All Options heeft zich van meerdere markten teruggetrokken (zoals Allard al had aangekondigd in de beruchte uitgelekte memo). OMX is daar een van.
BTW: Scandinavia only consists of Sweden, Norway and Denmark.
optiver is big in european index options. Tough to compete with them in terms of profitability. Intersting to see Tibra having a 11% share.
Volumes and p&L is not big in swedish indices, but this domination definatly is reflective of presence on euronext and eurex to a large extent
Index options is by far the biggest game for Optiver .. pretty much everything else pales around it ..
Why is everyone spamming here abt the exchange not working, one person said it, speak next if there is any more new update, till then don’t just keep blabbering,
‘The folks in Scandinavia take a different approach. The whole list of market makers is shown with the corresponding percentages. That is exactly what we’ve been looking for.’
Yah Scandi is pretty okay in that ways, it shows out Optiver’s hand in AstraZeneca and that should be major part of Optiver’s Cash Equities over there ..
‘Impossible to say anything specific on the kind of strategies at work – endless possibilities’
No not really, There are three major Greeks so to say, Delta, Vega and Gamma; For Delta and Gamma, that’s very short term based, straddle price, support & resistance etc .. could work out rule of thumb with appropriate price frequency or time frequency or just leave it to traders discretion if he can handle delta one punting .. for vega, its either term structure, stat arb, index correlation or in last case bit of historical if you believe the weak form of market efficiency doesn’t hold,
@2:09
Strategy’s for stock trading are a lot more complicated and difficult to say.
No not really, its either technical, fundamental, stat arb, index arb or some made up heaurestic .. the point .. you can come up with literally any heurestic based on tick data, volume, technical, fundamental; back test it and happy days are here .. but its not a strategy, its just a made up heaurestic ..stocks prices are made up of demand and supply of that stock and no heurestic in world can predict that supply and demand .. the regime these days is high correlation, rapid price adjustment and huge event risk .. nothing too complicated .. of course if you dont get it, then IT IS COMPLICATED .. rocket science if you will .. much like CDOs n shit ..
nice one dude: defending NYSE Euronext Amsterdam while they keep on messing up – over and over again.
read this website in more detail and you will find out.
@3.54
Sorry pal, but based on the statistics of the traded stocks it is not possible to guess to what extend market makers are hedging delta’s on stocks options traded on Eurex, which part of EFP trading, stat art, MTF arbitrage etc.
One thing which is very sure it the vega part doesn’t play any role in this 😉
@ 2.02
Personally I’m not really interested in bashing anyone, but it’s good for me to know I wasn’t the only one experiencing Euronext problems friday.
‘defending NYSE Euronext Amsterdam while they keep on messing up’
nobody is defending the stupid exchanges .. but it is tiring to see everyone spamming here abt something breaking down .. if you are bored go out and take a walk .. one person already posted abt breakdown and if there is no update from there, whats the pointing of repeating the same thing over and over again ..
‘but it’s good for me to know I wasn’t the only one experiencing Euronext problems friday.’
and you believe everything else written/commented on this blog too ?
‘based on the statistics of the traded stocks it is not possible to guess to what extend market makers are hedging delta’s ‘
i wasn’t trying to guess that either, read carefully, i was only trying to comment on ‘Strategy’s for stock trading are a lot more complicated and difficult to say.’
‘One thing which is very sure it the vega part doesn’t play any role in this ‘
short dated vega has gamma in it, and if you refer to SABR model, delta-vega are lot closer than you would think, not to forget hedging of vega with deltas in local vol model or even applied to black scholes .. why do u think correlations in asset prices or underlying market movts are so closely related .. its all this systematic and model trading ..
01 October 3.54pm
Just shows what a limited mind and skill set you have.
if you got more skill, kindly share it out or stopping bluffing around ..
You’re the idiot who’s always telling others that it’s a dog eat dog industry, that there are no free lunches, “life isn’t fair get over it” and here you are asking others to share trading strategies because to you it is inconceivable that others can make money in ways you don’t comprehend. What a douchebag.
Tomorrow evening I will post a lengthy discussion of other trading strategies. I will include detailed examples. Heck I’ll even tell you which securities to apply the strategies to. AND I will throw in the code for good measure. Is Java or C++ good enough for you?
good one … he does come across as rather ignorant. he completely ignores two of the most profitable (and widespread) strategies: front running and insider trading. banging the close. ripping the faces off clients. cornering. the list is endless. it all boils down to some form of manipulation. good luck with your sabr model pal. the real money is being made outside of your parents basement where you’ve been “trading” and blogging for the past decade +
‘it’s a dog eat dog industry’
no its not, so lets look at what finance does for the economy .. on the primary market, it matches investors and borrowers and takes a cut .. on the secondary market, it helps investors re-allocate from one company/industry/country to another and takes a cut .. and finally as a casino it helps punters get a high from taking a risk/gambling and takes a cut .. since underlying company/industry/country are so closely tied to both primary and secondary market, it’s not zero sum which could be argued for pure gambling/casino ..
‘there are no free lunches’
mostly not, but exceptions are always there, leo apotheker’s severance seems the latest one ..
‘life isn’t fair get over it’
do u disagree ?!
‘here you are asking others to share trading strategies’
kindly read carefully what i said, either share or buzz off, no need to bluff around, this is not poker table, no need to waste audience’s time ..
‘to you it is inconceivable that others can make money in ways you don’t comprehend’
If I believed that, why would I ask for new tricks; if you have new tricks but don’t want to share any tricks, then kindly pack your bags and leave pls, what’s the point of all talk and no substance ?!
‘I will throw in the code for good measure. Is Java or C++ good enough for you?’
Any half-wit in the business can tell you it’s not about some stupid code, code can be rehashed/redone till ad infinitum,
‘two of the most profitable (and widespread) strategies: front running and insider trading. banging the close. cornering’
Been down the road, I’ll advise to stay off it,
‘ripping the faces off clients’
This is bread n butter for investment banks and to be honest of any private business really; if anybody hasn’t experienced it firsthand, they can read ‘Traders, Guns and Money’, more than enough to get the experience second hand, ibanking 101, next topic pls,
‘it all boils down to some form of manipulation’
If you call outsmarting the market/retail/morons like you as manipulation, then fine, brand it that ways, no need for you to get upset over it, call it whatever you want to,
‘good luck with your sabr model’
Yah that is quite essential for ir vanilla options trading book and even more for complex derivatives, can’t keep adjusting every single vol with bloody 10,000 open exotic options, stochastics 101, next topic pls,
‘the real money is being made outside’
Again, why are you getting so upset buddy ?! loads of people are making good money, but for confidentiality reasons stay anon, there’s not much a rat race possible with this much confidentiality .. p&l is by far the biggest secret of a trading book .. so get over it, there really are no winners n losers in this, everybody is trying .. make some good money, buy a ferrari and be happy ..
“..but IMC trading more stocks” got pairs?
http://www.ftm.nl/original/computerhandelaars-van-optiver-sponsoren-de-uva.aspx
http://occupywallst.org/forum/proposed-list-of-demands-for-occupy-wall-st-moveme/
my personal favourite is demand #11
“my personal favourite is demand #11”
LOL! You lose all credibility when you make ridiculous demands like that.
All of the points are ridiculous. These guys are completely ignorant of history and basic economics. They pretty much want to enslave themselves, USSR style.
I know how to create full employment: setup laws that forbid trading goods and services with anyone outside your street. Full employment -We all get to work 12 hour days to earn enough to pay for 2 bowls of rice and one change of clothes. Happy times.
wow .. gives me a boner for Ayn Rand.
If demand 11 is on the way, lets all max out on mortgages and credit.
inflation is how debtors will be rescued by creditors so might as well join the queue, there is not much to invest in, so spend it if you will,