ABN transfers clients to TOM
In the nineties, the trading in futures on the Bund was mainly concentrated in London open outcry pit of LIFFE. Suddenly, the Deutsche Terminbörse appeared with an electronic trading platform and almost overnight captured all market share in the bundfutures mid 1997. When this happened, Willem Meijer was in the fixed income business.
Now Meijer is leading TOM, and starting next week may be a similar case of a major shift in market share. ABN AMRO will start routing all their option order flow to TOM (link, nl). Well I’m unsure of the size of ABN’s option trading flow – but this could really tilt the market in favor of TOM.
Market makers don’t really want to be active in a market where they solely trade against other market makers. Spreads could widen on Euronext, and tighten on TOM to trade against the retail investors. On the other hand, not much effort to send the same quotes to different markets.
Of course, there’s no such thing as passing through the benefits of a cheaper exchange to customers. Better execution on TOM is a fairy tale, the same market makers are sending the same prices, and markets are pretty tight – not much room for tighter margins.
Bad news for Euronext, that’s for sure. It’s a curious coincidence the options on Euronext will start trading next week, and the only interested market maker ready to provide liquidity is once again SIG (Susquehanna).
- News from the big board, IMC is getting a lot of airtime these days as Rob and Wiet bought the Goldman specialist pit, and the take over is getting reality. Link.
- This weekend the next edition of Financial Football will be held in Abcoude. Link.
Euronext also decided to stop the education and support of the retail investor in the Netherlands. A very important customer of the Exchange. It’s really a pitty that foreigners who have no feeling and understanding of the Dutch market make these kind of decision. The industry needs to work together to continue the educational efforts of retail investors.
second, nobody cares
how come there is so much volume comparatively speaking on European stock options as compared to UK stock options, are European retail big punters? you could guess the Dutch have got large trading proclivity given their history
What is happening at All Options ? Rumours they stop their business ?
What is happening at Tibra ? Rumours they stop their business ?
Rumors are that nobody actually cares!
What is happening at Van der Moolen? Rumours they… wait a minute!
mate you can’t put VDM in the same bucket as AO and Tibra, VDM deserves a whole special place for itself in the history of incompetence
would anyone care to explains what’s going on with AO and Tibra, or that’s just bs?
AO and Tibra have in past enjoyed good success, but since then they have had some rough patches, some of the people who were kicked out or left obviously still hold grudges as to why their company didnt make them millions like was the case with some of their other colleagues, rest is all noise
I heard some good things re Tibra, also taken into account their Optiver roots, however AO seemed to be a bunch of dinosaurs…
apply to tibra then, you dont have to waste time on AO, i am sure you are already not applying to hundreds of half-wit companies right?
correct, I am applying to Source Capital, just had an interview with the CEO Itay Gross
what’s itay like, which position are you raising your hand for?
Itay the CEO of Source Cap?? I think it’s Pieter van Hasselt. How is Itay like? I wouldn’t trust him even when he says good morning.
poor itay, all this rat race and back stabbing, it’s a poor statement for the entire industry
poor in the sense of not making any money for himself and his company? Why is the poor dude not trustable?
poor in the sense that you can have sympathy with anyone whose life has come to be a target of ‘I wouldn’t trust him even when he says good morning’?
the poor dude is not trustable as he made the mistake of being short term greedy at cost of not realising the value of long term trust in an organization