Susquehanna International Group has successfully taken over some of the primary market maker spots which came available after VDM went out of business. However, they haven’t exactly conquered the crown jewels.
PMM & CMM
As a primary market maker (pmm) one has the obligation to send quotes in all series in an option class. Short term, long term and even deep in-the-money options will have to be quoted. In return for this obligation the market maker doesn’t get paid, but its full presence in the market could generate a profit. Euronext supplies extra bandwidth to the the primary market makers.
The competitive market maker (cmm) receive less bandwidth, and are obligated to quote a minimum amount of at-the-money options. Twice a year the pmm and cmm licenses are auctioned by Euronext, based on subscribing to tight spreads and a large quote size.
Susquehanna
Susquehanna (wiki) will start as primary market maker in the following eight option classes : Air France, Crucell, ASMI, Nutreco, Vopak, Draka, Fugro and Wolters Kluwer. Must admit they have a strong appetite for the illiquid problem children of Euronext. Nobody wants to gurantee liquidity in these stocks, but Susquehanna is willing to give it a try. In addition, they signed for all competitive market maker licenses available. It’s the very first foreign market maker becoming primary market maker on the Amsterdam derivatives market.
Other VDM leftovers are taken by Leopark.
SIG used to be a specialist (old) at NYSE, there not a designated market maker (new)
Why did they drop out? or did they just go for the SLP instead?
SLP?
With the start of the screen trading, a lot of foreign market makers entered. Hull Trading, Hyperion and more. All of them left. Susquehanna will fail as well.
SLP, Supplemental Liquidity Provider, is the lower class of market maker in the sense that they're only required to quote one-sided.
As a SLP you get a cross section of stocks to quote.
Who is Hyperion? Never heard of them?
Very good foreign market makers (sometimes better than the dutch ones ) is Goldman, Bnp, Timber, Archelon, Oddo…not all of them left!!!!
Most foreign market makers just quote for getting the rebate on their own customerflow. Not really market making.
companies like mako and liquid, drw, have better systems than all the dutch groups. they just arent focused solely on the dutch and german single stock markets. the sooner you realise that the better. there is more going on around the world than being a pmm in hooghovens
and these 'better systems' were developed by themselves or something?? (compared to my ordinary ISV)
i agree – i think the dutch market makers dont really play outside of holland/germany/uk. oh sorry, i forgot, you can trade 40 lots on the hong kong exchange now with single stock options!
where is egbert….
bussy.. counting his money from the discount-trade with VDM
Except for Optiver, All Options and IMC, what are some good pmm´s or other trading firms to work for in Amsterdam ??
Thanks!
Scrocca is okay, although located far away from the city center. And Tibra is serious as well.
the best CMM is Goldman, sometimes much better than all the PMM
The best CMM isn't Goldman. It's Timber Hill who trades more than anyone else as a CMM.
But both Goldman and Timber Hill don't have offices in Amsterdamn right? I am looking for a job in Amsterdam?
go and work for all options. its easy to get a job and it is run by criminals
Where as Goldman is hard to get into and is ran by criminals.
Hahaha
And what if you don't want to work for criminals?
then ur fcuked!
the best market makers are mako, liquid and drw. i work ofr a dutch one and realise how narrow focused they all are in holland, and all do the same thing
so what products do you think the dutch marketmakers should trade to compete with mako, liquid and drw??
they should start by becoming good traders first
good traders become CMM or PMM.
mako = not, liquid = not, rdw also not!
i dont think they can be bothered. how much do you think they made trading eurostoxx and fixed income last year compared to cmm's and pmms posting 2 way prices on the single stock screens in holland… are you crazy…
oh, and its drw
@ Anonymous – October 23, 2009 3:50 PM
If you work for a Dutch MM and think they suck, why do you still work there then?
Liquid???…the Eurostoxx desk is leaving the company every 2 or 3 years for bonus issues,good place to learnn,but that is.
DRW,can not compete with the Algo Market Makers, this is the reason, they are only Market Maker in London and not in Amsterdam.
go to Sydney, all MM firms are looking for people and you can still trade eurostoxx
Reply on October 23, 2009 7:22 PM
position-trading on eurostoxx and fixed income is something different than marketmaking as a CMM/PMM… Totally not comparable with each other.
i agree that trading Eurostoxx is not the same that be CMM/PMM in Heijmas…but as example, the guys of Goldman cover with 5 guys almost the most liquid market in Europe, while the desk of liquid have 3 or 4 guys only for the Eurostoxx, or DRW has 1 guy for 3 each options class.
Only saying that desks working like the Goldman one is the future ,the rest of models unless your are a flow tradring desk, it is the past.
@Anonymous, October 23, 2009 6:30 PM
MM know as much about what makes prices move as plankton knows about what makes the tides move.
MM != trading!
Nice comparison.. with plankton, makes sense.
Last year most of Market maker in Europe made money and bank did not perform at all: Credit Suisse lost 2 bn in VW, DB lost 0.6 Bn in the Eurostoxx50 desk, Cbk also lost a fortune in VW, market makers traders are much better than flow banks traders that without flow are only arrogant ignorants (most of them french delta cheaters)
@ Oct26 5:58
By now you might have put the crack-pipe down and I am sure everything will clear up in the morning.
IMC lost enough to lose some sleep over in the VW spread.
All-Options thank their existance to a certain risk call in the VW spread.
Sean no longer exist (as an individual entity) because of the VW spread.
All so called market makers that got burned just like the banks did.
Market makers and flow traders alike at times take / get pushed into positions which they believe have edge but looking back in hindsight are all easy to avoid.
The french are f**K faces. Delta pirates
What's a delta pirate?
Is it profitable to be a delta pirate? if yes how do I become one?
I like pirates, they look cool and get all the good looking girls and they get free musik and movies
where is egbert….
who is egbert… i keep hearing his name. is it someone i should apply for a job with….
delta pirate= traders from Bnpp Arbitrage + french trades working in American or European Banks.
Since matthew can just push his company adverts on here – can I post that I've got a second hand bike for sale? In good condition. Taking offers…
15@ 32… for any size
I have a cd from Maurice Kroon in mint condition from the van der Moolen borrel. Highly collectible and very rare.
I'd like to have that one…