Breaking : merger AFS and IWB

65 comments / September 6, 2012

Wholesale brokers AFS and IWB agreed to merge their operations. The firm will continue under the flag of AFS. The brokers from IWB will join their former competitors in the exchange building. No idea on the details on the deal, but expect to read it in the papers tomorrow.

Back in the good old days when every clown could make a fortune trading options, we had a dozen of brokers. Every serious market maker had their own brokerage unit as well as every bank. Aespen, Amstel, Binck, ProBrokerage, InterOptions, RIA, Sem, Kempen : the golden age.

The main job of these brokers is getting market makers, banks, hedge funds and institutions to trade large blocks of options with each other. And receive some commission. The spreads were large, so a lot of room for negotiating better deals.

The spreads have collapsed in the screen and the order flow from the banks has dried up. The large brokers in London play a slightly different game and will survive, but the Dutch brokers have a though time. This merger of AFS and IWB looks like a big cost cutting measure.

The Dutch brokerage landscape is getting empty. Hope the combined new entity will manage to survive – the brokers enjoy a good reputation in the market and AFS employs a fine research desk. Still, every merger goes with the risk of cutting some staff. This one is no different. The number of brokers employed by the firm could very well be just a few too many.

Lost numbers at Optiver

39 comments / September 4, 2012

No news on the 2011 results of Optiver. The year was more volatile than the current one, and Financieele Dagblad reported months ago the firm made a profit of EUR 160 million – up from 75 from the preceding year. For us mere mortals, we had to wait for the official annual report for the juicy details. Average bonus or details on expenses – whatever.

Well, there it is but curb your enthusiasm. Chemtrails and other conspiracy theories aren’t my cup of tea, but Optiver’s financial statements have lost the 2011 numbers in the copy machine. Not only the numbers have been erased, also the graphs have come under attack (page 20). Don’t believe in fairy tales, it seems Optiver tried to hide details from curious competitors. Apparently with a little help from some friends.

After all, there’s no upside in opening your books to the rest of the world. Sure, the original statements can be seen in the office of the Chamber of Commerce (kvk) here in Amsterdam – but that isn’t comfortable if you’re in Chicago, Hong Kong or Leeuwarden.

Anyway – Johan Kaemingk assured a new copy will be made with clear 2011 numbers. Guess we’ll just have to wait for that. Hat tip to Henk Willem Smits from Quote.

A bronze medal

18 comments / September 3, 2012

But remember to come back in September, so after an unusual break for more than a month everything will continue as normal. Still doing fine, but appreciate your warm concern in the meantime. Patting myself on the back for updating this site every single month since January 2009.

Speaking of Swiss clocks and ancient stock market wisdom, there’s a new trading game around. Tradingdoors. Created by Jeremy Chatelaine, who worked for years as lead engineer at trading software vendor Actant and created some video games as well. He should know how to program trading simulation software, and yes – it works like charm. Log in is a piece of cake with your LinkedIn account. No password hassle. Realtime price feed from BATS.

Yet, there are some serious drawbacks. Only stocks can be traded, which are not so hard to understand. Oldskool stock trading isn’t much in fashion these days. A matter of taste.

A more serious problem. The creators have overestimated the price people are willing to pay to join in. Ten dollars for a game where currently nothing can be won is too much. Competition without critical mass is dull. Tomorrow will be the start of a new competition. With only two other players, a bronze medal is in reach for me.

Working in a fun environment at IMC

390 comments / July 16, 2012

Every once and a while mails arrive asking for advice for getting a job in the trading industry. Well, I’ve found the perfect job for getting a foot between the door at one of the major trading firms from Amsterdam, IMC Financial Markets.

Bizarre job

Hat tip to the comments, would have missed this golden opportunity. If it wasn’t for my lack of Linux knowledge, I would’ve applied myself.

Fresh mail in Tibra / Optiver case

566 comments / July 5, 2012

Short post, can’t do it much better than the Sydney Morning Herald today. Some mails surfaced from the period the Tibra founders were still working for Optiver. Finally, the password has been broken. “Ok Cats, We are 6 weeks out and under the pump. Here is the timeline we are working off.“

Source

Optiver profit 256 million

In the mean time Optiver has been doing very well last year. Pre-tax profit 256 million, up 110 million from 2010. Company warns of a though 2012. A little old news, but haven’t got the hold of a copy of their anual report just yet. Didn’t make it to Jelle’s most favorite journalist friends. (FT)

IMC fined in Hong Kong

And back to Asia again. Now IMC is about to leave the country to settle everyone down under, the love is finally over. The firm is fined 1.5 million dollar for breaching rules on covered short selling. Read the short message from the Securities and Future Commission.

Update : In Hong Kong people use the Hong Kong dollar to pay. Also to the SFC. In euro’s this fine is around 150k.

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