FOW Amsterdam in rocky markets

7 comments / February 12, 2016

FOWThe current markets make trading amazing. I predict the first quarter results of KCG, Virtu and Flow Traders will be spectacular. Shares of Optiver changed hands for €2000 – up from €1600 in 2015.

Our firm is made for this kind of market”, said CEO Doug Cifu after the August 24 stock rout. And regretted his remark immediately. Investors can’t stand it when a HFT CEO is trumpeting how much money they made, when regular investors lose. Anyway, this year that kind of market has been going on for weeks.

Enough to talk about. How convenient, the FOW Amsterdam event is coming up shortly. On March 10th, to be specific. Just like last year the location is Amsterdam Hilton. After a long day of interesting discussions, there will be an equally interesting gala diner and drinks.

See here for the list of speakers and topics. There are interesting speakers I’m looking forward to hear. Attendants will be folks from every relevant firm in the business. FOW made a list of firms sending delegates to last year’s edition. I hope the company names on the name badges will be without those errors.

Other small news

Virtu missed estimates on currencies

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High frequency job transfers

2 comments / January 29, 2016

There have been a lot of interesting job transfers involving trading firms IMC, Optiver and DRW. Looks a bit like the football transfer window  – a lot of movement in January. The Premier League transfers will receive enough attention already. In contrast to the football pitch, most traders remain loyal for many years. Here are January’s most eye-catching transfers in trading world.

Steven Hamilton (DRW) to London Stock Exchange

London_Stock_Exchange_LogoOne curious transfer made the head of DRW‘s London office, Steven Hamilton. He moved to London Stock Exchange’ fixed income platform, CurveGlobal. DRW is one of the major traders in fixed income derivative market. Steven Hamilton will be part of the business development team, responsible for prop traders and market makers.

CurveGlobal isn’t a household name, yet. CurveGlobal is a venture by the LSE with six major dealer banks and the CBOE. It aims to fight the duopoly that Deutsche Boerse and ICE have in Bund, Bobl, Schatz and Gilts futures. Expected to go live in second quarter of this year. Press release from October 2015, and more colour on this on Bloomberg by John Detrixhe.

Gerben Gooijers (Optiver) to Semiotic Labs

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DeGiro introduces secret costs

45 comments / January 26, 2016

Nee, niet weer he?DeGiro secretly charged customers for transactions at foreign exchanges. There’s a line in the fee schedule nobody ever heard about. It says “Setting up trade possibilities” (pdf). This means doing transactions at an exchange abroad comes at a small extra cost.

Once you do a transaction at a foreign exchange, you will be charged a fixed fee per additional exchange. No matter how many trades you do. The English customers have this fee curbed at 0,25% – but this isn’t the case for Dutch investors. Very recently the cap has been removed.

Paying in 2016 for transactions from 2014

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Euronext scraps rules on dividend calls

2 comments / January 22, 2016

AFM logoUntil a decade ago, it was common for market makers to accumulate massive open interest in call options before dividend. The boosted open interest in in-the-money calls was usually created against related entities under the same holding.

The idea was to take advantage of retail investors neglecting to early exercise their in-the-money calls before dividend. Having a short call non-assigned means pocketing a piece of free dividend. The non-assignments are divided pro rata.

Massive size in dividend calls

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New round in option exchange competition

9 comments / January 19, 2016

TOM option spreadsThe alternative option exchange TOM has released a fresh research report. The option prices across the three exchanges with options on Dutch stocks are compared.

The best bids and offers in the market on Eurex, Euronext and TOM are compared for December 2015. TOM hired reputable market research company Markit to do the job.  Good decision, because nobody would argue with Markit.

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