Liquidity providers on Euronext
October is not only the month of legendary stock market crashes, also time for updates from Euronext on who’s who in the option markets. Here’s the overview of all stock options with the market makers providing liquidity. Some new firms joined, some others left. Won’t surprise you only two new entrants to game.
New entrants
Commerzbank. Quoting as competitive market maker (cmm) in all ten large caps (ING, Unilever, Mittal etc). The proud new owner of a large chunk of Imtech is also CMM in a dozen small stocks. Don’t really understand why a large bank would like to quote Aalbers or Wereldhave. Worth mentioning, not quoting Imtech. No index trading.
Wolverine Trading UK. Similar to Commerzbank all ten target group big caps and a few smaller ones (like again Aalberts, USG, Wolters Kluwer). No index trading either.
Exit
Last year we had to say good bye to a lot of smaller firms. This time even All Options is throwing in the towel as liquidity provider. Used to be active in smaller stocks last year.
- Archelon Deutschland. Don’t know whether or not they exist elsewhere in Europe. Have been around for quite a long time.
- All Options. Rumors haven’t been good lately, and as of next week they stopped providing liquidity. Understood Allard won’t entirely stop trading, maybe shifting to market taker business model. After all they are still hiring.
- M & M Trading. Small shop shut the doors.
- The Hague Options. Disappeared from the list. Has always been a one man show probably.
- Smart Trading. Similar to the small ones above.
- Inhouse Trading. Similar to the small ones above.
- Goldman Sachs. Not very similar to the ones above. But not on the list anymore.
Who’s trading what
A few market makers are left providing most of the liquidity.
- Susquehanna is in a way the new All Options for Euronext. They quote everything when the rest of the market isn’t interested. The spotlight options, but also stuff like OCI.
- Srocca (/Fluhalp) is quoting everything, using their second license in the AEX as cmm. Just a very few options are left out (Arcadis, Nieuwe Steen etc).
- Webb is trading with their memberships Caerus II and II. Have left the index and Heineken, don’t know is this is related somehow. According to this source they just switched to T-Bricks. (“One of Amsterdam’s largest financial trading firm’s has appointed Tbricks” – right..)
- 323 Trading. Is primary market maker everywhere, including the AEX index.
- Optiver is active this time with three memberships. They have two entities for the large Dutch stocks, and one for Anheuser-Busch Inbev in Brussels. Not active in smaller stocks.
- IMC. Still active as PMM in nearly all stocks, including the index.
- Nino (Kemp) is active in half of the stocks, but not in the index.
- Liquid, Maven, Leopark, Market Wizards, Tibra, Cebulon and Better are only active in the index.
Here’s the pdf with the entire overview. While you’re at it, compare it with last year’s edition (here).
More
Blast from the past. Volkswagen and the mother of all short squeezes. This blog Priceonomics has reconstructed all events back in 2008. The squeeze has caused some post traumatic stress for dozens of options traders. (Via daskapital.nl)
Hong Kong based Algorithmic Trading Group (ATG) has finally become a member of Euronext, Tom Voute will open the market Friday the 31st. Search here for the video.
first, who cares, next
second, stop stealing my buzz words mate
worry 323 won’t survive it..
daarom zijn ze overal liquidity-provider zeker?
What about Virtu and Source Capital? They are both quoting on everything, why not mention them?
Anti-Virtu much? ;D ha. ha. ha.
Virtu and Source aren’t liquidity providers in the option market here.
so what, does this mean you can just ignore them? Don’t you hear that they quote on everything? Did you even think that maybe they’re *secretly* quoting ?
this article is for official euronext liquidity providers, this is not the unofficial list, you muppet
is Source Capital secretly quoting?
everything which is secret is done there, not even the people working there know what is going on, the company is a total chaos, very bad and unorganized management, developers do not know what to implement tomorrow and traders do not know what the developers are developing, nobody knows anything in this bizarre company…
time for you to stop complaining on this stupid blog and quit your role at source, life is too short
Commerzbank… what a joke.
why?
anybody caught short in the Nikkei upside ?
somebody very stupid?
Nikkei skew has been low for a very long time. There is always some batman wanting to bet on that. besides this announcement was unprecedented. Too big a stimulus
buying the cheap downside puts on topix is not a bad idea, it did slide down around 15% in very quick time in the weakest month of the year, of course that is just a classic correction in long term bull
as for shorting upside calls, well do it at your own peril, steep yield curve, growing economy, fed, ecb, boj, low oil prices, under invested asset class, buybacks, expensive alternatives, reasonable valuations, seasonal trends, currency wars, there is no end of reasons why you could get buried being short this market
as for ‘too big a stimulus’, well, move from 60-70 to 80 is not ‘too big’ to all the readers, given they are not really meeting their 2% mandate, at all
what about comemrzbank?
There’s also another big bank on the list, BNP Paribas.
Big banks could be just quoting for lower fees on their order flow. Although a little unlikely – much effort for little benefit
how much effort could it be? could you bid a price for a year on liffe amsterdam?
what’s the breakeven flow volume required to meet the cost of pure quoting?
“M & M Trading. Small shop shut the doors.”
Surprised they closed down, used to have a reasonable number of guys. Are they actually no more or just not market making?
“The Hague Options. Disappeared from the list. Has always been a one man show probably.”
Shame, they were 2 guys previously, really nice guys.
“Smart Trading. Similar to the small ones above.”
Also 2 guys, fairly recent startup, had only been going for a few years if memory serves.
“Inhouse Trading. Similar to the small ones above.”
Bye Marcel.
@ 1:50
Why do you forget to mention Tibra, the greatest fastest rising shop that at one point of glory had two shops in Europe. In London and Amsterdam
this is cut-throat back-stabbing business, being ‘really nice guys’ is probably not the best strategy?
Tibra doesn’t rate. It faded as fast as it rose – it was easy to make money for a while but these days any remaining market making is being propped up by other desks. Amsterdam shutdown when Alco left. US has never covered costs. Asia is struggling. All offices operate on skeleton staff and low budget. They can’t attract quality staff and they aren’t even trying because they’re hiring cheap. If they make money (unlikely) any bonus is paid out incrementally so if you join now and you might get it in late 2016 LOL
The guys from Maven saw the writing on the wall years ago and Tibra suffered when they left. It won’t take much (ie a few key defections) for Tibra to be just another burger shop by the beach. Do you want fries with that?
define ‘quality staff’ and ‘hiring cheap’
why is it unlikely to make money?
yes i want some fries with mayo
Tibra is currently on a full blown hiring spree here in Sydney. They’re revamping the offices, the old guard is out JT et al, There’s now a younger more vibrant bunch of traders and developers, better salaries, amazing perks and the bonuses are real this time – if you earned it, you will get it.
Tibra is also attracting the big guns from competitors such as KCG and Optiver to augment their code base with modern low latency and memory efficient techniques.
In short the future is looking great for Tibra and anyone involved with the operation.
tim berry still drives his ferrari 50 metres to the office.
nikkei rally vol pigs everywhere…
owners of count on the rally has been every market makers go to move for a while.. yen intervention is better than a meltdown. the bank flow panics for vol errrytime.
those who could scoop a shit ton of front few month call skew and height on the rally just made yearly bonus.
retarded Tibra would rather not quote nikkei and bury there heads in the sand than spend 150K to hire a trader to press play and print cash
why does tibra have to spend 150k to hire a new trader, why can’t their existing staff press play and print cash?
Also, why would the 150k guy come and print cash for tibra when he can print all the cash for himself?
what’s wrong with driving ferrari 50m if you love it? for all you know he takes a 50mile long expressway on route?