Smoking gun : manipulation in TOM option market

44 comments / July 11, 2016

AFM, kom er maar inA lot of words were used to describe the manipulation in the option market on TOM. This market structure issue is a piece-of-cake for insiders. However, normal people can find it hard to grasp. Luckily, we have more colour. The manipulation continued on Monday morning. It was easy to detect.

In short, the kid manipulated the option quote on Euronext. And he traded against this skewed quote on TOM.  Market makers have committed themselves to have prices at least as good as on Euronext.

Bloomberg screenshots

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TOM is gamed

TOM has been gamed

21 comments / July 8, 2016

The option exchange TOM has been gamed by a trader. The case came the light last week, after a string of suspicious trades in AEX index options. The exchange hasn’t lost any money on the (alleged) manipulation. The burden was for the market makers. It’s a bit of a complicated story for outsiders, I’m afraid.

Basic background

On the multilateral trading facility TOM (“The Order Machine“), options are listed on Dutch stocks and the AEX index. The same options are also trading on Euronext. In other words, there are usually two markets for the same option at the same time. A third option exchange, Eurex, doesn’t play a role in this story.

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Binck Graph

Shrinking Binck

21 comments / July 5, 2016

Binck is a premium online broker in The Netherlands. It has a small presence in France, Italy and Belgium. It’s listed on Euronext. Once upon a time, Binck launched attacks on the sleepy old retail banks. Luring customers away from ABN Amro, Rabobank and ING.

Das war einmal. The BinckBank is stuck in a moment, and they can’t get out of it. I predict a profit warning and dividend cut.

DeGiro starts to hurt

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Jongmans to Flow, CTC record quarter

25 comments / June 16, 2016

ABN AMRO Clearing Bank is a household name in the trading industry. For trading firms, it clears 2.4 billion trades a year, on 90 exchanges. It’s the largest clearing bank in Europe. In fields as small sized market makers the bank has a monopoly. They would ditch the small clients if they could.

In the world, ABN Amro Clearing Bank (AACB) ranks as the number three (according to AACB). Matter of definitions, difficult to point out the number one and two. With prime brokerage business, Goldman Sachs and Morgan Stanley. With FX there’s Citi and JPM.

From CEO to CFO

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FC Abcoude from the sky

Financial Football, GTS and ATG

6 comments / June 10, 2016

Today the European Championship will kick off in France. The Netherlands decided to participate in World Cups only. Saturday the championship will host matches with the national teams of Albania, Wales, Slovakia and Liechtenstein.

More interesting teams show up in the small town of Abcoude. Eighteen teams will battle at the Financial Football Tournament. As always with great weather and sharp organization by Ferry Boekholt from Bennington.

New team from Telstra

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