Euronext “expanding” in ETF options
The ETF options in the USA are soaring. While this sounds like a soundbite from ten years ago, it still holds. The volumes in ETF options have doubled in the last five years.
The option volume in the SPY (S&P 500 ETF) is massive. It accounts for nearly half of the total US options volume. Or have a look at these pie charts from Bloomberg Markets.
Source : Bloomberg Markets
Euronext says “me too!”
With this knowledge, it makes sense for Euronext to push for more volume in the ETF options in Amsterdam. There’s just a small difference with the USA. It’s another country. Nobody trades European ETF options.
There are half a dozen options listed on iShares ETF’s in Amsterdam. But it has been a failure so far. The options are quoted by Susquehanna, but are deserted ghost towns. Trading volume is absent, open interest is less than 200 in each of them. The open interest in iShares Japan options is as low as 12.
Weekly ETF options
It’s a success in the USA, let’s just introduce more maturities. Enter the weekly options on the European ETF’s. Per Friday April 22th, the weekly options on European ETF’s will be introduced. That will be another cash cow for SIG. Details from the Euronext notice on Weekly ETF options here.
Optiver having stellar results
The last quoted net profit estimate for Optiver was too low. Refreshed quote is 305 bid at 320 million. I predict 25% higher profits versus 2014. Once again Optiver seems to be growing faster than IMC.
The profits aren’t officially released yet. But there is a serious market in shares Optiver, open for Optiver partners only. The current bid is €2200 for size, which is 10% higher than a few weeks ago. Some 1,44 million outstanding shares, price/earnings multiple of 10 : you do the math. There’s a dividend announced of €130 per share.
Last summer Rob Keldoulis sold a lot of Optiver shares at €1600. Immediately afterwards it was €1700 bid. The Australian is a former Optiver partner and current CEO and founder of Vivienne Court Trading in Sydney.
DeGiro has twitter
Noticed another small flaw in DeGiro’s inhouse matching system. However, the order execution microstructure can be a complex story. Also, I don’t want to publish another negative story on DeGiro. Leave it for somebody else to find and publish.
In other words ; something positive. Since a few weeks DeGiro is active on twitter. Finally. With an account tweeting in Dutch, English and Swedish. Wonderful combination.
Jack, i did the math, as you asked. Although rather well informed, you are wrong in the number of outstanding shares. They have only 1,4 M shares. And those bids you mentioned are stealing prices, based on p/e of 8 at the most. Make your own math now.
Typo in the nummer of outstanding shares. Corrected, thanks.
?? censorship on amsterdamtrader ?
Rob Keldoulis was the so-called MD asleep at the helm when a whole bunch of his “employees” left Optiver on mass and began trading just a few days later under the name FTD.
Rob was “given a golden-parachute”/terminated by Optiver over the blunder.
FTD started in 2006, Rob left in 2009. I think your cause-and-effect story is a bit far-fetched.
Rob was not asleep at the helm, he was meditating! A subtle but crucial difference.
and maybe ETF’s are popular in the US because of the tax-treatment:
http://www.etf.com/sections/blog/time-year-remember-etf-tax-magic?nopaging=1
how is optiver so much better at trading than imc? don’t they do like the exact same thing?
imc employs monkeys. optiver employs traders
Optiver has always had more risk-appetite than IMC. Secondly they have been more generous with handing out/selling shares which possibly created more commitment from seniors to teach juniors how to trade.
IMC is very poor at managing people
Is there a difference?
Mainly because IMC hires the guys who got rejected at Optiver
Optiver has a partnership structure. That makes the difference.
IMC has no people management capability. Good leaders and people managers they hired to help take IMC to the next level were ultimately rejected as they did not fit into the current culture, and Rob and Wiet have no appetite to change the way things are. Looking at the growth numbers, one could argue it was the right thing to do. Do they want to keep people there happy and in the company for years? No need to, HFT firms can attract top talent and maintain a constant stream of talent every year.
Looks can be deceiving.
Overall IMC is obviously making good money, but not all offices do so. Amsterdam is struggling since years and Zug is more or less flat. Chicago and Sydney are the offices to work for, some smart folks understood this and managed to move from the poor to the rich offices. You have to be at the right place at the right time at IMC, this counts much more than your skills or ability to generate P&L (although HR and your manager will never admit it). Those who follow this rule (pretending not to know it) make at least 1’000’000 in bonus per year at IMC.
“Those who follow this rule (pretending not to know it) make at least 1’000’000 in bonus per year at IMC.”
Sold
Which companies are the ones to work for?
I hear maven and tibra are killing it nowadays
Liquid Capital, Autumn Compass, Epoch Capital and Virtu have each been making roughly $750+Mil in post tax/cost profits for the past several years with very small yet extremely productive and intelligent work forces.
Pay scales and bonuses at these MMs are typically 2x-2.5x more than the rest (Optiver, IMC, SIG etc).
Also the at-work perks these MMs provide are much better and far more generous when compared to the rest of the pack.
Liquid Capital? Are you kidding?
750m+? Are you kidding?
How’s Vivenne Court performing anyways? Anyone has any insights?
Banks having to cut down exposure to prop trading is slowing results across the board. Most of their business will be eaten by these HFT’s given a lot of agency flow will directly hit the exchange as opposed to going through bank desks.
BS, banks can still do market making and they do prop trading as part of it
A new file has been made available on the Euronext Corporate Actions Portal
A new file has been made availabel on the Euronext Corporate Actions Portal
A new file has been made available on the Euronext’ Corporate Actions Portal
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