The e-minis are the most popular equity futures in the world. It trades virtually round the clock on CME’s Globex.
This is a big deal. For investors there is the home market, and there’s the USA. The introduction of e-mini’s carry more marketing value than prime-time TV commercials. Introduced are e-mini S&P (ES) and Nasdaq 100 (NQ) futures and options.
The fees are $0.50 per contract plus the fees for the exchange CME. The CME doesn’t come cheap for non members. It charges $1.17 for e-mini futures and $0.55 for options (see here). Also, DeGiro charges €5 each month you carry any position on the CME. Delayed prices – when you want free realtime prices your best bet are CFD shops like this one.
iDealing complains about DeGiro
I received a long pdf with complaints about DeGiro. It states DeGiro isn’t complying with European rules. It’s a long and technical story, referring to different European laws and regulations. And includes a link to my website, always appreciated. The letter aims at six points.
- DeGiro does not comply with its disclosure obligations under the Capital Requirements Regulation (CRR), commonly referred to as “Pillar III disclosures”
- DeGiro appears to be dealing on its own account, for which it has no license
- DeGiro has omitted to publish audited annual accounts for 2014
- DeGiro does not maintain sufficient regulatory capital
- Certain provisions are not in line with applicable rules
- DeGiro acts in breach of prohibition to obtain funds from the public
Here’s the source pdf.
The letter is send to AFM (Dutch securities watchdog), DNB (Dutch national bank) and ESMA (European Securities and Markets Authority). It doesn’t just complain about DeGiro. In addition, it attacks the institutions on failing to supervise DeGiro. Playing hardball.
The firm responsible for the letter is omitted. Luckily there are enough clues. Can’t elaborate too much on the details, but everything points at iDealing, the UK broker. iDealing denied they are behind the letter, but I have no reason to believe them.
iDealing is failing in The Netherlands
Earlier, I predicted iDealing would leave the country in three months. And not being able to attract more than 200 clients. Apparently, iDealing hasn’t given up yet. Their website is in a silly kind of Dutch. The average Nigerian prince sends be better mails than iDealing. This explains there’s still a job opening for a Dutch native speaker. No suprise here.
The broker specialises in the fine print. Some transactions are free, but only if you are happy with being forced to cross the spread and trade off-exchange. You have to pay €5 if you withdraw money your account. If you close your iDealing account, you have to pay €50. A true bargain.
Does iDealing have a case, against DeGiro?
Not really. I’ve checked with Gijs Nagel, chief of DeGiro. As always, he’s pretty cool about it. He maintains the firm operates within all applicable laws. Pillar 3 is disclosed here. The issue with attracting funds from the public has already been unsuccesfully tried by others. The dealing for it’s own account is aimed at lending shares from one customer to the other. Not much dealing for their own account in this case.
It looks like iDealing receives no reaction from the authorities, for a good reason. It looks impressive at first, but turns out to be a rather silly attempt.
* Other news
Timber Hill for sale
Interactive Brokers is the owner of market maker Timber Hill. It used to be way ahead of the pack, with a state of the art trading system. Alas, times have changed. The market making part of Interactive Brokers is for sale.
German tax authorities after ABN and IMC
Trading the cum/ex dividend deals used to be Big Bird’s game. Frank Vogel with GSLA did quite some size in this. Unfortunately, the Germans don’t like being ripped off. ABN Amro Clearing is under fire for helping with these kind of constructions.
According to the FD, the German tax authorities also claim €4.4 million from a former IMC director individually. That’s pretty harsh, when he (or she..) left the firm years ago.
Virtu earnings beat
Stock dropped heavily in preceding two months, but the results of Virtu were fairly okay. A surprise after the terrible results of other trading firms (KCG and Timber Hill). Particularly good news, as I own more Virtu shares than I should. Flow Traders coming up on Wednesday. I have low expectations.