Jump gives $25 million to medical research
102 comments / March 2, 2014
A sharp contrast with the small struggling firm mentioned here last week. The Chicago headquartered high frequency trading shop Jump Trading is still kicking it.
Unsure about their exact profits, but it must be enough to fund $25 million to a medical research project.
To give a sense of proportion ; the Dutch market maker Optiver makes a yearly profit of around 150 million.
first,
150m for optiver is not a good indicator; better way to look at the biz would be gross trading revenue say 500mil euro (700mil $), fixed cost of 150-200 euro, 150-200 floating comp and remaining as taxable net profit?
Is it really charity or an investmen fund? I really hope it’s not because of some tax advantages…
…Or maybe they have seen the light? (To what is important in life)
Isn’t this old news ? Since 2011?
http://www.osfsaintfrancis.org/news/2011/release-09162011-001.html
of course there are tax advantages, you know govt actually promotes private charity by these tax incentives, which country do you live in that doesn’t give such tax incentives to charities?
junior, not everybody is as clued in as you, some of us are extra extra junior
@10:54 🙂 I use google, otherwise I never heard of jump trading before 10:00 CET today 🙂
Why the kriss kross reference, it’s “Amsterdam” trader, van Halen would have been a better choice 🙂
this is what you call, killed by your smiles
you sound german?
which kriss kross reference, what’s the link to van halen?
this is not surprising,
Jump Trading is the fastest in the industry, followed by Virtu, IMC, and Optiver. Tibra and Getco are out of the speed race, so either they come up with better strategies or their profits will suck.
how do you know virtu, imc and optiver are slower than jump?
@12:39 you sound too old : ) Or could it be too young ?! : )
House of Pain would ‘ve been a good alternative too..
A welcome move towards betterment of humanity. Unlike a lot of cheap guys on six figures who can’t leave even a 10 % tip.
i am super senior, last to default, sell cds on me, all day long
what’s this reference to house of pain?
the no-tippers are usually europeans/dutch, there is quite bit of socialism where everybody is as rich or poor as the next, so this bling bling of americas with flashy tips don’t work where there really is not much difference between the giver and taker
of course earning a million dollar in chicago doesn’t make the dutchchie change his instinctive habbit of no tip
Jump Trading is the fastest in the industry, followed by Virtu, IMC, and Optiver. Tibra and Getco are out of the speed race
Umm sounds like u are out of the race. Your not even aware of the biggest players
just saw this in the inbox, not sure if he worked at Jump but entering his name autofills Jump Trading directly after it on google.
FILE NO.: CME 10-7599-BC
NON-MEMBER: James Chiu
EXCHANGE RULE
VIOLATION(S): (Legacy) Rule 432. General Offenses
It shall be an offense:
B. to engage in… conduct or proceedings inconsistent with just and equitable principles of trade;
Q. to commit an act which is detrimental to the interest or welfare of the Exchange or to engage in any conduct which tends to impair the dignity or good name of the Exchange;
T. to engage in dishonorable or uncommercial conduct.
FINDINGS: Pursuant to an offer of settlement in which James Chiu (“Chiu”) neither admitted nor denied the rule violations upon which the penalty is based, on February 27, 2014, a Panel of the CME Business Conduct Committee (“Panel”) found that Chiu is subject to the Panel’s jurisdiction because the conduct at issue occurred while he was employed as a proprietary trader by a member firm. The Panel also found that from August 30 through September 15, 2010, Chiu—while entering and managing orders manually and without the use of a pre-programmed algorithm—engaged in certain activity wherein he entered large orders on the same side of his existing position in the E-mini Standard and Poor’s 500 Stock Price Index futures market (“E-mini S&P”), most of which he did not affirmatively want to be filled, and he fully canceled these large orders less than one second before his passive liquidating orders began trading or before he entered an aggressive liquidating order. Because Chiu’s large orders on the best bid (offer) temporarily created a large imbalance between the volume on the inside bid and offer, some other market participants may have reacted by modifying, entering, or cancelling their orders from the displayed book.
Further, the Panel found that on September 15, 2010, Chiu, without full regard to his trading account’s cash balance, the potential risks presented to his firm and clearing firm associated with receiving fills on these orders, or his current position in the market (long 1498 contracts), entered six 2,000-lot sell orders on Globex at the best offer, most of which he did not affirmatively want to be filled, and then subsequently canceled all six orders within 0.925 seconds of entering the first order, and within even a shorter time after he entered the sixth order.
In making these findings, the Panel considered the temporary volume imbalances, the percentage canceled and the exposure time of the large orders Chiu entered and fully canceled, and the potential disruption to the market.
The Panel found that Chiu thereby violated CME Rules 432.B., 432.Q., and 432.T.
PENALTY: In accordance with the settlement offer, the Panel ordered Chiu to pay a $155,000 fine, and to serve a two month suspension from membership privileges on any CME Group Inc. exchange, access to all CME Group Inc. trading floors, and direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group Inc. The suspension shall run from March 3, 2014, through and including May 3, 2014.
EFFECTIVE
DATE: March 3, 2014
Umm sounds like u are out of the race. Your not even aware of the biggest players
We are curious to hear more about this, please come up with a list
what list, he was just doing some good old poker bs, no list
poor James Chiu, what’s he upto now, that’s the problem with hiring young trader straight out of uni, your pre-frontal cortex is just not developed enough to think of long term risk taking with large sums of money
how come cme took 3.5 years to get to this simple conclusion?
Merc justice moves slow and there’s no shortage of dirtbags to investigate.
Amazes me how big that guy’s limits must’ve been on order entry. Let’s assume since he had 12k in the book on spoof orders and a long position of 1500 contracts, his limits were atleast 15k. At $12.50 a minimum tick that’d put him potentially on the hook for $187,500 a quarter point minimum tick. I didn’t think there were any cowboy gunslingers like that around anymore.
not all of them are dirtbags, they just get caught in the moment, it’s easy to slip at the time and then regret it for the rest of their lives
and why are you assuming his limit was 15k, that was one of the points in the complaint –
‘Further, the Panel found that on September 15, 2010, Chiu, without full regard to his trading account’s cash balance, the potential risks presented to his firm and clearing firm associated with receiving fills on these orders, or his current position in the market (long 1498 contracts), entered six 2,000-lot sell orders on Globex at the best offer, most of which he did not affirmatively want to be filled, and then subsequently canceled all six orders within 0.925 seconds of entering the first order, and within even a shorter time after he entered the sixth order.’
and how do you conclude that there are no more any cowboy gunslingers like that around anymore?
@3:20 I’m not sure why I’m even responding cause your questions are some of the dumbest on the internet but here goes….
“not all of them are dirtbags, they just get caught in the moment, it’s easy to slip at the time and then regret it for the rest of their lives”
Yeah jails are filled w/people who try to use the same explanation. And I’m sure this was the only time this trader and/or his firm did this, yeah right. Most likely the only thing he regrets is getting caught and being $150k out of pocket + a fair amount of lawyer fees.
“why are you assuming his limit was 15k”
I have no idea what his limits are and I said we can safely assume it was ‘atleast 15k’ considering he had 6 x 2k orders entered in and 1500 already on, that equals 13500. My question is why couldn’t you do that math?
“how do you conclude that there are no more any cowboy gunslingers like that around anymore?”
Because they always blow up and eventually get caught big the wrong way trying to do something like this. If someone is dumb enough to spoof with 10x the size of their position in a market filled with big boys, it’s inevitable.
if the questions are dumb, you really don’t need to waste your genius on them, go solve some problem of cancer or hunger or environment or education with your great brilliance, what are you doing wasting yourself over on this stupid forum
you really are generalising the person with spoofing to a serial rapist in jail?
why are you so safe in your brilliant assumption of spoof < limit, i don't need to do the math, i can leave that for your great mind
'always' and 'inevitable' is another of your safe assumption? i thought you are using your sharp mind and not just continue making more safe assumptions, you can leave those to muppets like some of the rest of humanity
if you’re the guy or his mate who got busted, it sucks but should’ve thought about that before engaging in such activity. didn’t intend to call the guy out but listing the violation (which is a public document) obviously touched a nerve. (usually a warning is given to offenders from an exchange and fines come after continued behavior)
occasionally i need to take a break from fighting the forces of evil, advocating for America’s conversion to the metric system and pursing my doctorate studies in Gregorian chanting so that’s why i drop into this forum.
there are a lot of people in jail who committed various offenses, if you want to use one of the most extreme offenders of a serial rapist then go ahead but that’s a weak argument which is meant to discredit mine but only shows your immaturity. plenty of white collar folks as non violent offenders in jail, from what i’ve heard commodity market violators are low man on the totem pole in the prison hierarchy so not a good place to be.
uhhh, if there is a limit of how many total contracts can be entered then yes the total amount of spoof orders has to be below that limit.
the emini was trading roughly at 1120 on the date, the notional position of the spoof order was 2/3rds of a billion dollars. and you’re trying to defend that idiots actions? but hey, you want to also take the opposite view that it’s not inevitable someone doing stuff like this should remain trading.
looks like he was slinging bigger than Paul Rotter back in the day
this is financial sector, with backstabbing and huge inefficiencies, nothing is told or explained to you and you are left hanging dry in the first instance, ‘go figure out yourself’, lol
‘weak argument’, ‘immaturity’ is again one of your safe assumptions?
what’s the ratio of people in prison for momentary lapse of judgement vs planned offences, violent or other wise, you don’t mind seeing Sergey Aleynikov in prison do you?
‘if there is a limit of how many total contracts can be entered’
here ‘if’ being your safe assumption?
what makes you think i am defending the actions, another safe assumption i presume? go read the lines again
‘not all of them are dirtbags, they just get caught in the moment, it’s easy to slip at the time and then regret it for the rest of their lives’
how’s paul rotter doing these day, human liquidity provider still working okay for him?
rotter moved to singapore years ago and that was the last word floating about. anyone got newer words?
if there are 10,000 machines and servers working round the clock to beat a bozo, what new words would you want
Anyone knows what happened to KOSPI options? There’re lots of options without any quotes… very unusual. Where are the market makers?
maybe the market makers are still there as usual and your exchange connectivity and quotes are not getting updated, did you try rebooting your systems
Sure I checked it, KRX web site shows the same (http://eng.krx.co.kr/m3/m3_2/m3_2_1/JHPENG03002_01.jsp)
Just scroll down a bit and there’re lots of ITM options without quotes and some OTMs missing as well
Never seen it before…
‘wierd’ isn’t it, what was the root cause then?
@12:39 the 3rd: Kriss Kross, Van Halen and Jump, and that does not ring a bell? Get some knowledge on the classics man! You must be an IT-nerd with no life!
http://en.wikipedia.org/wiki/Jump_(Van_Halen_song)
not everybody in the world follows ancient synthrock
is ‘extra extra junior’ some kind of kriss kross reference?
For those who loves hit parade
currently, Jump Trading, Virtu and Hudson River Trading are rumoured to be the fastest in Europe. But those things change, not so long ago Tower research and BNP Paribas had the fastest connection.
‘Rumoured’ is the only key takeaway?
That list is wrong, fastest continues to be Rothschild. Their carrier pigeons are unmatched.
but they are not carrying pennies back n forth on 100 lots either
I would like to know how these lists are compiled. Is it just people talking, or is there someone actually keeping track of who gets the easy money trades?
interesting article on a larger trend that will continue to shrink order flow for trading firms to rape.
http://www.thereformedbroker.com/2014/03/05/the-relentless-bid-explained/
Any Dutch firms who have given a single euro in charitable contributions? It’s a good thing that Jump is doing here and would love to hear of other firms who have done similarly, if any.
these lists are compiled when you are in mood of coming up with poker bs, think for yourself, can anyone actually keep a track of who gets the easy money trades?
josh brown is often too bearish, ignore his unified bid theory
charitable contributions are not a bling bling flash size competition, you make a difference quietly and effectively without flagging to the whole world of your greatness/kindness
‘It’s amazing that almost no one has connected these dots before’
Here’s another self-made genius
somebody thinking of an interesting name for their newborn
http://en.wikipedia.org/wiki/Libor_(name)
Czech trading firm RSJ is actually lead by a guy named Libor! Any info if they’re still dominating the STIRs like they once were? RSJ used to post volume on their site but not for past couple years.
http://www.rsj.com/en/about-company/board-directors/
why would anyone post their internal secrets for the whole wide world, isn’t there usually a premium attached to such privileged information?
dutch firms are more tight lipped about their charitable endeavors than their bonus figures it appears
the population and gdp ratios for usa vs dutch is around 20 times, you really can’t get into bling bling flash size competition with them you know, not withstanding the dutchchies global business success
that’s fine, to use your comparison then it’d be great to see a 1/20th the size contribution of what jump did. of course the analogy is incorrect because these firms operate on a global basis and aren’t related to dutch gdp. if there are no examples then just admit it, nothing seems harder than for a cheap person to admit they’re cheap.
mate, the contributions are greater than that of jump, we just don’t believe in showing off our greatness and kindness to the rest of world, the difference is made quietly and effectively
‘analogy is incorrect because these firms operate on a global basis and aren’t related to dutch gdp’
did you not read ‘not withstanding the dutchchies global business success’?
go google ‘not withstanding’ in case you are not familiar with english language
there are plenty of examples, fortunately nobody needs your stamp of approval on how to conduct onself, just mind your own god damn business
thanks for the enlightenment, when i think of paragons of virtue the first thing that will come to mind is a Dutch market making firm. not only are they to be exceedingly generous to help the world (and this is beyond the market making services which in itself benefit mankind greatly) with staggeringly large monetary donations, but they’re also exceedingly humble and do their best to make sure no one can identify their kindness. if i were to pass a newly built orphanage in the Cormoros or see a BBC newstory on anti-landmine technicians in the Hindu Kush, it will first come to mind that they could be anonymously funded by the generous yet humble Dutch trading industry.
you are welcome any time
actually you are wrong, when you think of paragon of virtue, go look in the mirror, you are thy lord, king of all paragons, lord savior, jesus christ himself, messiah reloaded
this blog has seen better times
Yes, it was quite good last week actually
IMC donate a sizeable amount to charity every year, both in terms of on-the-ground charity work through the weekend school as well as financially. A 2% charity contribution is levied on all bonus payments to staff and the firm itself contributes handsomely.
here comes the bling bling flash size competition, anybody else want to give in their size, 12 inches anyone ?
IMC 2%? When did that change from 1%? And how much extra than that 1% is being allocated? I think it’s 1%
‘Czech trading firm RSJ is actually lead by a guy named Libor! Any info if they’re still dominating the STIRs like they once were? RSJ used to post volume on their site but not for past couple years.
http://www.rsj.com/en/about-company/board-directors‘
RSJ is still dominating markets as far as I know. They also moved to Eurostoxx futures and some oil futures. But I have no idea how they are doing there. BTW RSJ is led by Karel Janecek (math guy )who is doing some semi- political career now., Libor is just current appointed head but he is more focused on administration. Libor also mentioned in one of the interviews that when flash crash occured in 2010 they lost like 70 % of their bankroll.
how do you mean how much extra than that 1% is being allocated?
also how do you mean they lost like 70 % of their bankroll? Say, they had 100milion equity and they had a drawdown of 70mil during flashcrash? that sounds horribly poor risk controls?
Well I am just saying what he answered in intervew. Maybe they recoup some of the losses as market normalized. But taking into account they market making position which is huge, it is quite possible. However they claim, that their risk controls are one of the best in industry. But little I know about how they work, something similar happened to them in 2007.
You can use google translate for article :
http://ako-investovat.sk/clanok/324/libor-winkler-video-rozhovor
if it’s ‘quite possible’ to draw down 70% of your equity, then you are just playing a totally wrong risk control limits? And this seems to have happened in couple of times, lol, who are the current equity providers in the business, they better hold on for another roller coaster in next few years?
IMC donations will never reach the equivalent of 25 mio, let’s be frank. However, IMC surely donates more in 1 year than source capital or tibra in 10.
imc wins the award for biggest swinging **** of the town
‘However, IMC surely donates more in 1 year than source capital or tibra in 10.’
these are shitty companies with no PL so the comparison makes no sense. You have to compare IMC with the peers like optiver for example.
25 million donation should match at least 250 million of profits which should be compatible with 800 – 1000 million PL.
Jump is doing well.
Congrats Jumper
What a nonsense is being posted regards Tibra, they are solidly profitable (true, after cutting costs, but that only means management has got their eyes on the ball) and they pay 50% of p/l to traders, more than any of their counterparts.
People who complain about Tibra likely have been axed..
Congrats Tibraite
50% of 0 is still 0
is ‘0’ the new ‘solidly profitable’, what gives
Solidly profitable? Heh. Bored of posting fake 5 star Glassdoor reviews are we? What a joke.
Laugh out loud then
According to an anonymous top manager at Source Capital “in a bad environment there aren’t much returns to be had”:
http://www.amsterdamtrader.com/2013/10/tibra-leaves-swiss-exchange.html#comment-18609
How come companies like Jump have such extremely high returns in today’s environment? Does this manager have any clue of the trading industry and related bonuses in our days?
how did you conclude that was from anonymous top manager at Source Capital?
Yes, there is very well established paradigm in the trading industry, top 2 have 150% market share and bottom 3 pay for that 50%, that took a lot of genius, didn’t it?
And Jump is not the only one raking it in
Infinium finally quit trading
http://www.reuters.com/article/2014/03/06/us-speed-trader-infinium-idUSBREA251Y520140306
According to an anonymous top manager at Source Capital “in a bad environment there aren’t much returns to be had”:
50% of pnl paid to traders, less shareholder capital charge, less management/HR bonuses, less IT bonuses.
Define “IT bonuses”, do they get to play video games on the large screens after hours?
no they do that all day long
Tibra pays 50% p/l to the employees, not just traders. That includes IT.
these top managers at source capital sound very smart, how much p/l share is source giving to traders?
It’s pnl dependent, if you generate very little, your %cut is little, but if you print 10s of mios, you’ll get much greater piece of it
do you get 5 mio if your p/l is 10?
yes, you get a bonus carrot of 5 if you were to reach 10; but the actual payout at the time would in be in line with your expected npv going forward, not on your last year’s pnl. that’s the mistake most people make, confusing arcade’s formulaic payout to other place’s discretionary bonus. Discretionary, by def means a lot of bonus carrot and payout being dependent on your value to firm going forward, not what you delivered last year. If your 10 pnl can be replicated in your absence, why would they pay you 5, you have to convince in what new way are you going to generate 10 in the coming year
the truth is that there is no agreed payout, it’s all discretionary since the payout changes continuously and there is complete freedom to change the allocated costs (which have a final affect on the bonus), all agreed PL payouts based on whatever formula are an illusion.
why are you rehashing the points already made above?
IMC adjusted the charity contribution from 1% to 2% a year or two back. Say what you like about IMC but they do have a social conscience.
What was the reasoning for the increase from 1 to 2%? Lack of P&L?
Congrats IMCer
1% looked optically poor, doing the minimum possible, you really can’t do 0.5% can you, so to improve the optics, they jacked it up from 1% to 2%, now a proud IMCer can claim on their generosity and not just in name of it at 1% initial value
Thanks anonymous. Appreciate it.
really you need random stranger’s appreciation to feel good about yourself?
Yip. I’ve a low self-esteem so any appreciation is welcome.
is it the same for your fellow simians (IMCian); you get kicked around so much in the org politics that you are now looking outwards for your basic human appreciation needs?
IMC needs to have a soul before it can have a conscience. The charity is an ego rub for Defares.
imc is not a ‘person’ and doesn’t need a ‘soul’, you are there to work and get paid salary, that’s it, if you want charity or conscience, do it in the evenings or weekends on your own personal time
why all this attention for IMC?
All companies have a culture and a DNA – that is their soul and IMC probably has one as good as anyone else. Does Rob get to feel better about himself by donating to charity, who cares, as long as money goes to a good cause!
IMC has faults, and from reading this blog some say weak management and leadership being such faults, but they do try do good in terms of charity work.
compared to many other players in trading IMC has much stronger leadership and management, otherwise it would not be so successful. Most of the small prop trading companies which are struggling in our days have incompetent and desperate managers hoping to hire the next big guy in order to get the next big strategy to save them
wherever people are not happy with their life, they are going to complain, thus all the attention to imc
what has weak management got to do with charity work?
some people may not feel happy to see this news compared to their bonus.
they can quit and get a job at Jump?