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Proprietary Trading
Proprietary trading (also known as prop trading) occurs when a trader trades stocks, bonds, currencies, commodities, their derivatives, or other financial instruments with the firm's own money (instead of using customer funds) to make a profit for itself. Proprietary traders may use a variety of strategies such as index arbitrage, statistical arbitrage, merger arbitrage, fundamental analysis, volatility arbitrage, or global macro trading, much like a hedge fund. Famous traders Trader Nick Leeson took down Barings Bank with unauthorized proprietary positions. UBS trader Kweku Adoboli lost $2.3 billion of the bank's money and was convicted for his actions. Armin S, a German private trader, sued BNP Paribas for 152m EUR because they sold to him structured product A structured product, also known as a market-linked investment, is a pre-packaged structured finance investment strategy based on a single security, a basket of securities, options, indices, commoditie ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Trader (finance)
A trader is a person, firm, or entity in finance who buys and sells financial instruments, such as forex, cryptocurrencies, stocks, bonds, commodities, derivatives, and mutual funds, indices in the capacity of agent, hedger, arbitrager, or speculator. Duties and types The word "trader" appeared as early as 1863 in a universal dictionary as "trading man." Traders work for financial institutions as foreign exchange or securities dealers in the cash market and in the futures market, or for their own account as proprietary traders. They also include stock exchange traders, but not stockbrokers or lead brokers. Traders buy and sell financial instruments traded in the stock markets, derivatives markets and commodity markets, comprising the stock exchanges, derivatives exchanges, and the commodities exchanges. Several categories and designations for diverse kinds of traders are found in finance, including: * Bond trader. * Floor trader. *Hedge fund trader. * High-frequency trader. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Armin S
Armin S. (complete name unknown, born ) is a German independent securities trader. He achieved international recognition in 2017 when he filed a lawsuit against BNP Paribas for its continued refusal to deliver €163 million in securities he had purchased in December 2015, one of the largest civil cases brought by a private investor in Germany. Career Armin S. started his career as a trader at the German WestLB Investment boutique. Afterwards he worked eight years at Citigroup on the trading floor. Subsequently, he set up his own office to trade for his own account. Armin S. compared his job with the work of a used car dealer, constantly buying and selling shares of stock in a corporation, or securities representing other financial instruments, making his margin on the bid–ask spread, the difference between the selling price and buying price. He tracks the high-speed changes in these prices through a computer program, which alerts him to changes in the bid–ask spread ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Optiver
Optiver Holding B.V. is a proprietary trading firm and market maker for various exchange-listed financial instruments. Its name derives from the Dutch , or " option trader". The company is privately owned. Optiver trades listed derivatives, cash equities, exchange-traded funds, bonds, and foreign exchange. History Optiver was founded by Johann Kaemingk, Ruud Vlek and Chris Oomen on April 9, 1986, as a market maker in options on the European Options Exchange (EOE), which is now Euronext. Optiver is a member of the European Principal Traders Association (FIA EPTA), FIA Principal Trading Group (PTG) in the US and FIA Japan. In 2023, Optiver became the first market maker to join the Plato Partnership as a full member. In November 2016, Optiver was reported to have joined a consortium to build a faster data transmission network between Chicago and Tokyo. In December 2017, Optiver joined with Equiduct to offer a one-stop shop for best execution. In November 2018, Utrecht Universit ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Jump Trading
Jump Trading LLC is a proprietary trading firm with a focus on algorithmic and high-frequency trading strategies. The firm has over 1500 employees in Chicago, New York, Austin, London, Tel Aviv, Singapore, Shanghai, Bristol, Gurgaon, Gandhinagar, Sydney, Amsterdam, Hong Kong, and Paris and is active in futures, options, cryptocurrency, and equities markets worldwide. The company is a member of the Principal Traders Group, an advisory group formed by the Futures Industry Association (FIA) to represent principal traders (i.e. independent proprietary trading firms that trade only on their own accounts). Jump has been privately funded throughout its existence. History Jump Trading was founded in 1999 by two former pit traders, Paul Gurinas and Bill Disomma, who met in the Deutsche Mark pit at the Chicago Mercantile Exchange (CME). While the firm got its start in the open outcry pits, Jump Trading does nearly all of its trading electronically. The company has made substantial inves ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Jane Street Capital
Jane Street Capital is an American proprietary trading firm headquartered in New York City. It employs more than 2,600 people in six offices in New York City, London, Hong Kong, Amsterdam, Chicago, and Singapore, and trades a broad range of asset classes on more than 200 venues in 45 countries. It is among the principal Market maker, market-makers – in 2020 it traded more than $17trillion worth of securities. It was considered to have helped keep bond Exchange-Traded Fund, exchange-traded funds (ETFs) liquid during the 2020 stock market crash, market turmoil in 2020. History Jane Street was co-founded by Tim Reynolds, Rob Granieri, Marc Gerstein, and Michael Jenkins. Reynolds, Granieri, and Jenkins were formerly traders at Susquehanna International Group. It was started in 1999. In 2012, Tim Reynolds stepped down from his position running the firm. Activities The firm ended 2020 having traded $4trillion in global equities, $1.4trillion in bonds, and $3.9trillion in ETFs. Dur ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
IMC Financial Markets
IMC Financial Markets, sometimes referred to as IMC Trading, is a proprietary trading firm and market maker for various financial instruments listed on exchanges throughout the world. Founded in 1989 as International Market makers Combination, the company employs over 1500 people and has offices in Amsterdam, Chicago, Sydney, Hong Kong, Mumbai and other places. History IMC was founded in 1989 by Rob Defares and René Schelvis, two traders working on the floor of the Amsterdam Equity Options Exchange. In 2008, Wiet Pot joined as co-CEO alongside Defares. Pot left the board in September 2017, leaving Defares as sole CEO. Trading IMC is a technology-driven trading firm active in over 100 trading venues, offering liquidity to over 200,000 securities. IMC makes markets in the major exchange-traded instruments – equities, bonds, commodities, and currencies – on 100 exchanges worldwide and is a significant liquidity provider on the NYSE Arca, NASDAQ, CBOE, BATS Bats are ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Hudson River Trading
Hudson River Trading is an American quantitative trading firm headquartered in New York City and founded in 2002. In 2014, it accounted for about 5% of all trading in the United States. Hudson River Trading employs over 800 people in offices around the world, including New York, Chicago, Austin, Boulder, London, Singapore, Shanghai, Mumbai, and Dublin. The firm focuses on research and development of automated trading algorithms using mathematical techniques, and trades on over 100 markets worldwide. The company is a member of the Principal Traders Group, an advisory group formed by the Futures Industry Association (FIA). Business Trading Hudson River Trading is a multi-asset class firm that trades across various time horizons. It differs from stereotypical high-frequency trading firms in several important ways: it holds about 25% of its trading capital overnight (unlike most high-frequency trading firms that hold almost nothing overnight), its average holding time is about fi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Headlands Technologies
Headlands Technologies (Headlands) is an American quantitative proprietary trading firm headquartered in Chicago. It has additional offices in New York, Austin, Amsterdam, and Singapore. Background Headlands was founded in July 2009 by three former senior executives from the trading side of Citadel Group. Matt Andresen was a former co-chief executive at Citadel Securities. At the same time, Jason Lehman was head of Citadel's global options business, and Neil Fitzpatrick was chief operating officer of Citadel Execution Services. The partners secured outside funding to start the firm and set up its quantitative trading operation to trade equities, options, and futures. The trading would be computer-driven, and the firm would not run outside money. At the start, the firm had ten employees. In 2013, Headlands Tech Global Markets LLC was established to trade Fixed income securities. In 2014, it started trading municipal bonds and focused mostly on lots of $100,000 or less. In 201 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Global Trading Systems
Global Trading Systems, which uses the trade name GTS, is an American proprietary trading and market making firm headquartered in New York. The firm accounts for 3 to 5 percent of the daily turnover of US equities and has handled over 250 IPO listings since 2013. GTS has additional offices in Chicago, Florida, London, Paris, Warsaw, and Israel. Background In 2006, GTS was co-founded by Ari Rubenstein, David Lieberman and Amit Livnat. The trio had previously worked at the Pax Clearing Corporation in the cash equities business. During their time there, they noticed that computers were able to trade much faster and more efficiently than humans. When the Chicago Mercantile Exchange became a public company via an initial public offering, it was clear to them that technology would drive business and gave them the idea to make a business based on electronic trading. GTS began as an equity trading operation but later expanded into other products. In 2009, it started trading futures ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Flow Traders
Flow Traders is a proprietary trading firm. A market maker, it provides liquidity in the securities market by using high frequency and quantitative trading strategies. Originally founded in Amsterdam, Flow Traders also has offices in New York, London, Milan, Paris, Cluj, Shanghai, Singapore, Chicago, and Hong Kong. Activities Flow Traders continuously quotes bid and ask prices for Exchange Traded Products (ETPs), options, fixed income products, and currencies. In 2019, Flow Traders announced that it would also begin trading cryptocurrencies. One of the world's largest ETP market makers, it provides liquidity for more than 13,000 ETP listings across North America, Europe, and Asia Pacific. As of 2020, Flow Traders is Europe's largest ETF market maker. In April 2020, Flow Traders established the Flow Traders Foundation, a charitable foundation that focuses on poverty alleviation. https://flowtradersfoundation.org/ In 2022, Flow Traders announced the departures of its Chief Ri ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
DRW Trading Group
DRW Holdings, LLC, typically referred to as DRW, is a proprietary trading firm based in Chicago. The firm was founded in 1992 by Don Wilson, an options trader at the Chicago Mercantile Exchange, and was named after his initials: DRW. The firm trades various financial instruments, including fixed income, options and derivatives, energy and agriculture, and cryptocurrency. DRW has offices in Amsterdam, Austin, Greenwich, Tel Aviv, Chicago, New York City, Houston, London, Montreal, and Singapore. DRW is one of the largest trading firms in the world. History DRW was founded in 1992 by Don Wilson, an options trader at the Chicago Mercantile Exchange, and was named after his initials: DRW. The firm utilizes a variety of different strategies, including high-frequency trading, and was a notable subject in Michael Lewis's 2014 book ''Flash Boys'', which describes how several trading firms compete with each other to purchase and establish infrastructure that allows trading advantages at ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Citadel Securities
Citadel Securities LLC is an American market making firm headquartered in Miami, Florida. It provides liquidity and trade execution to retail and institutional clients. The firm also trades futures, equities, credit, options, currencies, and Treasury bonds. It is the largest designated market maker on the New York Stock Exchange. Citadel Securities is a separate entity from the hedge fund Citadel LLC, although both were founded and are majority owned by American hedge fund manager Kenneth C. Griffin. Citadel Securities moved its headquarters from Chicago to Miami in 2022 with plans to build a new headquarters on Brickell Bay Drive. Peng Zhao, who joined the company in 2006, has been the CEO since 2017. History 2000–2010 Citadel Securities was formed in 2002, as a market maker, providing liquidity and trade execution to retail and institutional clients. In 2008, Citadel Securities hired 70 people and Rohit D'Souza, a banker from Merrill Lynch, who left after ei ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
