Scrocca, the liquidity provider king
In the past Euronext Liffe used to have an auction in market maker roles every six months. This has been changed, and all roles have been auctioned. This selection process is based on the performance of the market maker in the past year. Quoting tight and for size will earn you brownie points. Generally speaking, the big stocks and the index are always in great demand – and the tiny illiquid option classes are hard to fill with liquidity providers. Compare Royal Dutch Shell with Mediq.
The end of weekly options in Philips and KPN
With the trading fees charged to retail investors it won’t come as a surprise the weekly stock options aren’t popular. The weekly’s in Aegon are still okay with Optiver, IMC and Scrocca signing for the quoting obligations, but ING and Mittal weekly’s are depending on a single market maker (Nino). The weekly options in Philips and KPN will be deserted after November 1st. Guess Euronext will halt trading in these options. Also note the dividend futures failed, the screens are empty.
Scrocca the new liquidity provider king
The graph shows us the amount of primary market maker roles (blue) and competitive market maker roles (red) per firm. The Sloterdijk based firm Scrocca is quoting the most option classes. True believers in the quoting approach, but completely absent in the AEX index options. All Option is still having several roles too, but most of their PMM roles are in quiet illiquid stocks. Note the overview of liquidity provider roles will change in February 2012, after results of play off procedures will be announced. Always good for the competitive spirit, will get back to those matches later.
lol. Liquid.
How well do these stats correlate to P&L?
Jack, I think you missed a couple of PMMs in the weeklies, IMC and Optiver are still there.
lol @ tibra
Scrotum with the big balls. Fear the nutsack.
Liquid is building it slowly but surely. Reactor needs some more fuel rods. Liquid is the source of pure liquidity – at least for one underlying at the moment.
Klinkenberg equal to Golman Sachs!!
liquid should watch out for tsunamis..
I wonder what the true believers at Optiver like Johann have to say about this then….. GOD now officially says there must be a financial transaction tax.
Vatican Calls For ‘Central World Bank’ To Be Set Up (Reuters)
The Vatican called on Monday for the establishment of a “global public authority” and a “central world bank” to rule over financial institutions that have become outdated and often ineffective in dealing fairly with crises. The 18-page document, “Towards Reforming the International Financial and Monetary Systems in the Context of a Global Public Authority,” was at times very specific, calling, for example, for taxation measures on financial transactions. “The economic and financial crisis which the world is going through calls everyone, individuals and peoples, to examine in depth the principles and the cultural and moral values at the basis of social coexistence,” it said. It condemned what it called “the idolatry of the market” as well as a “neo-liberal thinking” that it said looked exclusively at technical solutions to economic problems…It called for the establishment of “a supranational authority” with worldwide scope and “universal jurisdiction” to guide economic policies and decisions.
I am so much longing for dictatorial institutions who can rule on everything and everyone who does not comply with the f*cked up vision of a bunch of tyrannts.
Exactly. Much like the EU we should have a non elected world authority of bureaucrats expanding their jurisdiction and power. Then they can levy taxes to fill their pockets.
Can’t wait. The globalist New World Order guys have finally subverted their staunchest enemy. Well done. I wonder which FEMA camp i’ll be staying at.
‘lol. Liquid.’
Wat is funny ? Liquid is not in the list ?
It is, right above Susquehanna. Looks like 1 PMM role.
Liquid is only active in the AEX index. A kind of inverted Scrocca.
Liquid having only AEX is nothing out of ordinary, it should be covered by index options desk .. Scrocca is the intriguing one, they haven’t got even a CMM in AEX ? If not, they are missing a trick with dispersion trading, not to mention somebody who can arb Single Stock options trader to make sure he doesn’t mis-mark the book or offload positions in illiquid market .. optiver got that figured out after some painful muddling about ..
“somebody who can arb Single Stock options trader to make sure he doesn’t mis-mark the book or offload positions in illiquid market”
I don’t get it.
yep, please elaborate
what a very cool shop, that scrocca. they a super job. chapeau.
“Scrocca is the intriguing one, they haven’t got even a CMM in AEX ? If not, they are missing a trick with dispersion trading”
As if you REALLY need the PMM/CMM license in the index options (if you are PMM/CMM in the constituents) to complete a dispersion strategy … Clearly you have no idea what you’re talking about but you think its cool to pretend as if you had a clue. Like so often.
‘yep, please elaborate’
You should ask your trading manager or senior trader, these bloody losers never share the tricks and at times don’t even know it themselves .. if you haven’t figured out even after that, I’ll do the elaboration next week ..
‘Clearly you have no idea what you’re talking about but you think its cool to pretend as if you had a clue. Like so often.’
rather than putting an idea down, just make the point about topic under discussion and dont start talking personal garbage, you might think its cool to do mud slinging as if you were da man. Like so often.
[…] outcome of the selection process of liquidity providers. This website even presented a wonderful graph with all firms and their number of roles, and brought the news of the end of some classes of […]
[…] play-off for market maker licenses. The auction for primary market maker (pmm) licenses was held two months ago. The contestants had a month for learning the tricks of the trade. From December 1st they will […]