amsterdamtrader — Saen

Posts tagged “Saen”

2009 expiration

Written by Jack. Posted at 1:33 pm on December 26th, 2009
The year 2009 is almost gone, and trading has been fairly quiet as usual during the last weeks. Plenty of time to look back on the events of 2009.

All Options to buy Saen Options

One of the few main events this year happened straight in the first month. January 28th the market maker All Options announced to take over rival firm Saen Options. The latter had experienced a troubled 2008 due Volkswagen positions, and All Options was happy to buy some television airtime with the Beursplein 5 former trading pit.
Clan warfare remained low among traders, but the merged firm fired scores of employees in the fall of 2009, including some well known senior positions. The results of All Options didn’t benefit however, and the traders will receive no bonus over 2009.

AEX drops to 1995 levels
A great buying opportunity happened end of february / beginning of march this year. The AEX index dropped below the 200 points level, last seen in July 1995. As we all know, the financial melt down didn’t occur, and the index climbed some 72% to levels above the 330.

Van der Moolen early signs of trouble followed by bankruptcy
Analyzing the VDM quarterly report with some general derivative trader common sense was the first post on this company. Still patting myself on my shoulder re-reading my post on their weird dividend losses. One month later it turned out the balance sheet of the firm clearly carried some obvious weak spots. Traders left the firm to form Caerus Trading, and a few weeks later VDM was dead and buried. Other remains of the firm continue in several new ventures.

Optiver – Binck deal still allowed

The initiative by Optiver and Binck to route all Dutch retail flow straight to the books of Optiver did absolutely gain momentum this year. The market maker lobby couldn’t reach a consensus and has no opinion on the largest and most dangerous threat to the rest of the market. The financial watchdog AFM and other relevant institutions don’t interfere (yet). Nobody trusts Optiver, and Optiver won’t trust their employees. Mobile phones are banned at the office.

Last & least

And, last and least, this site Amsterdamtrader will see it’s very first anniversary next week. Thanks to everyone who helped with content and grammar in the posts, thanks to the contributors in the comments and the visitors of course. Everyone is invited for the Amsterdamtrader-one-year-anniversary party on January 8th in the Beurs van Berlage. Cheers!

Posted at 1:33 pm on December 26th, 2009. 27 comments... »
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All Options’ chief commenting on Saen

Written by Jack. Posted at 2:03 pm on March 24th, 2009

Allard Jakobs gave an interview to the Dutch financial newspaper Financieele Dagblad. After some overly ambitious mission statements (world power), he commented on his recent acquisition of rival Saen Options. Most executives would remain cautious, politically correct and avoiding stepping on toes. Not in this case, and it turned out to be a highly entertaining interview.

First of all, the management of Saen Options really blew it. No organization apart from the trading desks and lacking a strategy. Everything was focused on trading and making money. Over 2008 Saen was marginally profitable, partly due to suffering from millions loss on trading Volkswagen options. The most curious quote was on the secretive nature of Saen. Some traders had a special condition in their contract barring them to talk about their trading with their own fellow traders within Saen. Sounds perfect for the company spirit.. what else to talk about?

It’s a relief All Options’ boss isn’t a believer of the “merger of equals” fairy tale. They own it, and will dominate the company structure and culture.

(Original interview in Dutch over here)

Posted at 2:03 pm on March 24th, 2009. 17 comments... »
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All Options to acquire Saen Options

Written by Jack. Posted at 8:40 am on January 28th, 2009

Big news in small Amsterdam; Option market maker All Options is acquiring rival Saen Options. I noticed a steep rise in hits on this post thanks to google yesterday – but a little inside knowledge doesn’t make a difference as none of them are listed companies. All Options made a killing in 2007, when it did homework better than competitors like Interactive Brokers in trading options Altana.

The reason behind the take-over remains puzzling. There isn’t much synergy in doubling the amount of traders. The clearing house won’t have much room to reduce the fees these days, and combining the research expenses can hardly be seen as justifying merger risk. Saen Options has a way better building though.

The official press release on this forum gives some clues. Major bullshit management lingo with cementing positions, leading market maker and of course a few words about the cash cow “time zones”. According to the press release the take-over is also intended to “enhances our focus on All Options as best place to work“. It’s a mystery how this is related to a merger – especially when traders working for All Options receive below average bonus deals percentage.

Either Saen Options was on the edge of failing, or All Options’ founder Allard Jacobs had a sudden but usual attack of megalomania. Combination of both, I guess.

Small update: Last rumors confirm Saen was having a difficult year in 2008. According to brokers they haven’t been very active recently. Strange, because their in-house computer systems are said to be top notch. Long dividend or short VOW calls can seriously ruin your day, though. In contrast to All Options, Saen has a serious trading operation in Asia staffed with over 40 employees.

Posted at 8:40 am on January 28th, 2009. 25 comments... »
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