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
Of course, AACB is part of ABN AMRO. But the CEO of the clearing bank isn’t middle management. It has more than three times more employees than Flow. The CEO announced last Friday to leave the bank. Marcel Jongmans will be CFO at Flow Traders. That’s not immediately a promotion. The pay will be a lot better. Though compensation in shares isn’t what it used to be. Stock near all-time lows.
The curious thing is Jongmans knows everything about the other customers of AACB. Except for All Options, every Dutch trading outfit is a customer of ABN. Jongmans knows in detail what Optiver and IMC are doing in the ETF space. This raises some eyebrows. Jan Bart de Boer, the current vice-chairman of AACB, will replace Jongmans on ad interim basis. Wouldn’t surprise me if this ad interim changes into regular job as CEO for Jan Bart de Boer.
Dijkstra worth more than Rietberg
At Flow Traders the co-CEO Dennis Dijkstra will lose some of his work to Jongmans. Dennis Dijkstra and Sjoerd Rietberg are both CEO, but Dijkstra received more shares than Rietberg at the IPO. The difference is substantial. Dijkstra received around 250k shares more than Rietberg, or €7,5 million in valuation. Reasonable to expect Jongmans to take over the helm at Flow Traders in a few years time.
Euronext to introduce options on PSI-20
In the land of Euronext, there are two main equity indices to trade. The CAC-40 in Paris. The AEX in Amsterdam, not the most leading index but it comes with a liquid pack of weekly and daily options. Hardly anybody knows there’s an index in Belgium with options too. Not the most spectacular trading in these options. The current open interest is 43.
There is good news for the BEL-20. Euronext is about to launch options on the Portuguese PSI index. Promises to be even more of a ghost town than the BEL. The options will trade in Amsterdam, but the futures trade in Lisbon. Que pena! Assume no market maker will take on all the paperwork for a Portuguese membership. The plan is to introduce the PSI options on June 27th.
New IPO’s, new options
Next week other options will arrive in Amsterdam as well. Following a string of IPO’s, a set of spotlight options will start. All of them will start trading on June 21, two days before the Brexit vote.
- Philips Lighting (already available at TOM, code PLT)
- Intertrust (code ITR)
- Coca-Cola European Partners (code CCE)
- ASR Nederland (code ASR)
CTC earned $300m in Q4
Rumor has it CTC, Chicago Trading Company, had a record last quarter of 2015. The firm is mainly active in the option trading business. CTC is big in the index options, where it employs around 40 people. With offices in Chicago (duh), New York and London the company has a total headcount of around 350.
The education and training program at CTC is interesting. A chap named Sheldon Natenberg is head educator and partner at the firm. For those interested, they share a recommended reading list on their website (pdf).
They have a great dealing room (see featured image on top). The rumored gross pnl of $300m is their highest ever in any quarter. Volatility in the oil price was the main driver behind the record profit.