Egyptian options in Amsterdam
The force of the pyramids strikes Amsterdam. Euronext Liffe will list options on OCI NV, an Egyptian company active in the production of fertilizers and the construction business. To my surprise this company, with current headquarters in Geleen, employs 75.000 people worldwide.
Not tiny small cap, it’s a component of the AMX index and next year it will likely be included in the AEX index. Market cap is over 6 billion euros, but 57% of the shares are held by the Egyptian Sawiri family. OCI stands for Orascom Construction Industries, and I’m not sure why they left the Cairo exchange for Amsterdam. Can imagine you will get fed up with the tear gas every day.
New selection procedure
The selection procedure for market makers (here) has been changed. Instead of an auction for the tightest quotes, the spreads are defined by Euronext Liffe. Take it or leave it. All Options and Caerus/Webb will quote it, perhaps with 323 and Scrocca.
According to UBS, after this December expiration two new stocks will join the AMX index. Accell Group and Grontmij – expect options on these stocks soon.
Update
Thanks to @margefreek I noticed these OCI shares may be a little different from other less liquid shares. Turnover is extremely tiny with today less than 10k traded. Next to the Egyptian family, another major investor is Bill Gates. Bid ask spread in the stock is medieval. Don’t rule out the possibility no market maker will sign for quoting these options.
first,
‘I’m not sure why they left the Cairo exchange for Amsterdam’
shouldn’t this [brrrrp]
[dude, grow up]
who cares abut egyptian options…
How are Tibra getting on?
haven’t you heard already, tibra is bust, next
how come even simple statements against censorship are getting censored whereas ‘[dude, grow up]’ is being allowed, what a load of hypocricy
yep, tibra is dead. Only like 50 people left in the entire company worldwide, where they used to have around 200! They are also closing down their main bondi office.
a shame really – decent technology but incompetent managers.
All stolen
Any idea on what can be done to save Tibra?
this is a very competitive industry, you can’t just save a company once it falls behind other players, either find a niche so that you can compete successfully with other participants or just liquidate the whole business and find a better home for the capital
btw, hiring senior traders with 5 years trading experience ain’t a niche, it’s the dumbest idea around, you only going to fall in the trap of bad lemons
this 5 years experience is quite naive from management indeed, that’s a mistake that many prop shops, where management has no clue about trading, make
Tibra could make good profit from what they had learnt in Optiver. The problem is the algo idea and technology are no longer working. They failed to adapt to new environment. They’re good at copying other’s idea. Another example is they’ve hired a guy from Boronia and set up a MF quant desk.
The guys from Boronia have already left Tibra, so they’re left with MF algos but no-one who understands them or can maintain them.
Well the top 4-5 founders have pretty much retired and resigned from the company. Makes it less motivating for others to stay and run the firm.
The law suit was also a big de-motivating factor for guys to stick around, looking to jump ship whenever they can.
The nature of the business gives you quite a bit of moolah in the first few years. When you are young a lot of guys leave because THEY CAN and find other things.
what are mf algos and what’s so complicated about them, if it was designed by a trader, it shouldn’t take much time to get your head around it
where are the guys from boronia these days, found a home or set up their shop?
rumors they are talking to Source Capital
what they are going to move to swizzland?
First, Source Capital has an office in London, they recently moved to a very small office in a basement to save on the rent
Second, Source Capital is spamming all traders coming from other companies out of desperation, no doubt they talked to the boronia guys
Third, the Boronia guys should be smart enough not to jump from one sinking shi[t|p] to the next one
fourth,
fifth,
sixth?
G’day folks. My name is Tim.
I’m here to reassure you that I don’t have any plans to close Bondi office. In fact, the only reason why I decided to close Amsterdam office and fire Miti was the fact that I couldn’t afford to buy a first class return ticket from Sydney anymore.
I paid Miti handsome bonuses but he turned out to be a shit trader in the end.
As for Boronia guys, my best traders learned their strategy and are able to execute it at 50% of the costs. So you can figure out the missing parts yourself.
Thank you
And fuck off
Has Miti sold his R8 and downsized to a Smart car yet?
who is Miti?
Pronounced Mai Tai or Muay Thai
G’day mate, what’s all this fuck off business, chill out mate, how about a chilled Faasters
Who is Tim?
will the real tim berry please stand up?
why would he do that?
maybe if he is in the mood
No one in Australia drinks Fosters. It is a shit beer.
Maate, chill out, how about a budweiser then, g’day for it aaeh,
No, you don’t understand. Aussies don’t like Aussie nor American beer. Aussies have a self-esteem problem. They hate it when people see them as convicts, they try therefore very hard to seem sophisticated. In Aussie eyes, Europeans are sophisticated. That’s why they only want to drink European beers, drive European cars, shop in European clothing stores etc. etc. etc. An Aussie driving a VW Golf to Pitt St Mall in order to stand in line at the Zara is Very Sophisticated.
Now have a Peroni.
i don’t need to understand maatte, now chill out, g’day for some surfing in the fiine san, let’s head auut dere