IMC boosts profit with 63%

155 comments / June 3, 2014

In less volatile markets, IMC Financial Markets is still doing impressive with a profit of € 127 million over 2013. That’s 63% more than over 2012. The revenue was a nice € 403 million.

Average pay €285k

There has been some trouble in the past with the bonuses at IMC. Most of the variable cookie jar did end up with senior management – with disgruntled traders and especially developers as a result.

So far nothing to report of the sharing of the pie, but at least the average remuneration for the 619 folks at IMC was € 285.000.

Dividend of € 160 million

Other people pocketing a decent sum are the directors / owners Wiet Pot en Rob Defares. The company paid out € 160 million dividend. More than the yearly profit, but the firm’s balance sheet is strong enough for such a move. Still it puzzles me what kind of incentive is behind such a dividend.

Hat tip to quotenet (nl)

No bribes in TOM’s NL20 Index

74 comments / May 22, 2014

Today the elections for the European Parliament. If the polls aren’t mistaken the biggest winner will be the anti-European PVV party. Not to discuss politics, but TOM is probably catching the right wave with their own Dutch stock index – the NL20.

Silently the website for the NL20 has been launched, and of course it’s an all Dutch affair. The only English can be found in the draft version of the Rulebook, added on the 21th of May.

There’s a good case to be made for removing the Egyptian OCI and the French Gemalto and Unibail from the Dutch stock index AEX – but it isn’t that easy to cover it in rules without getting too arbitrary.

No SBM Offshore

The stock universe is described as the “securities of companies listed on the Reference Market in the Netherlands that represent Dutch entrepreneurship“. There we have it, the famous Dutch entrepreneurship.

That’s the only reason I can think of why the current AEX member SBM Offshore is left out of the NL20 index. Bribing officials in Africa and Brasil apparently doesn’t represent Dutch entrepreneurship.

Here’s are the constituents. Furthermore it’s a total return index (like the DAX) so it will “outperform” the regular AEX pretty fast. It will be calculated continuously.

Suppose the derivatives will be announced shortly – with their retail order flow they should start with a fee holiday for everyone for the first month. That’s their only chance of beating the strong brand of the AEX.

Huh? All Options profitable again

87 comments / May 7, 2014

Didn’t see this one coming. After years of decline, Allard Jakobs surprised everyone with a profitable last year. In 2013 All Options made a profit of EUR 995k.

Very modest profit

A profit of a million is peanuts compared with the massive losses earlier. Back in 2010 the firm lost 300k per day. Don’t even think of comparing them with the larger trading firms in Amsterdam, Optiver and IMC are in another league.

The annual report (pdf) is a good read, especially the first pages. Allard isn’t very positive on the general trading conditions. First of all, banks ignore the best prices and trade against their own clients (keeping flow away from All Options), and the race to the bottom in high frequency trading is a waste of resources. Firms are required to invest heavily in technology, which is of no benefit to the end users of the market.

Structured trading approach

But nevertheless All Options is doing fine, as they are only beginning to “harvest the fruits of their structured trading approach”. The trading revenue doubled to EUR 6.2 million. All Options’ headcount was 39 end of 2013 (down from 52). The employees didn’t get rich last year, as the average yearly pay was around 60k.

Bonus to be paid in 2014

The bonus for the positive result in 2013 has been paid out in 2014, so uncertain how the money is shared. Anyway, good to hear the comeback-kid Allard Jakobs is in business again.

Of course, hat tip to Henk Willem Smits of Quotenet (nl).

More market share for TOM

51 comments / April 16, 2014

The volume in the options market at Euronext Amsterdam will decline in a few months. TOM will tweak their routing model, capturing a few more percent of the retail order flow.

Best price guarantee

Currently, the retail orders from brokers Binck and Alex will always be executed on TOM. They have a “best price guarantee” – when the price on Euronext is better, the retail client gets execution on TOM against Euronext’s prices.

Stat trades

The trade itself is executed on Euronext, but moved to TOM thanks to market makers who are willing to take these positions on their books. They won’t really notice, apart from building up long/short positions in certain strikes on Euronext/TOM. This volume is executed on both TOM and Euronext. They call this “STAT” trades.

In a few weeks TOM will tweak this model. Market makers can opt-out for the hedge on Euronext. When client order comes in and the price on Euronext is better, it will be executed on TOM and randomly given to market makers who participate in this schedule.

Basically, market makers suddenly don’t have to quote anymore – they will do trades on other people’s quotes anyway. And this flow will never reach Euronext again. In the beginning of May this schedule will start with DSM.

ABN AMRO

As shareholder in TOM, the state owned bank ABN AMRO will finally connect to the exchange in a few months. Clients will be connected to the Smart Order Routing (SOR) – in contrast to Interactive Brokers. Another bank lined up for TOM is BNP.

No lower fees

The retail investor doesn’t benefit at all from the competition between TOM and Euronext. Fees aren’t lowered, nothing to choose. Partly because the brokers will just pocket the lower fees at TOM.

Firing spree at IMC Amsterdam

183 comments / April 10, 2014

Not afraid to admit it, I have read it first in the comments here. It has been confirmed : IMC has sacked 23 employees last Wednesday (April 9th).

Some traders, some IT staff. That’s around 10% of the headcount in Amsterdam shown the door. Add up the folks who left after pocketing their bonus two weeks ago. There must be a lot of empty desks in the office.

And is it me, or does IMC Financial Markets have a new website?

Amsterdamtrader