Well, the JBO is already established. My firm has two of them set up. Under that JBO, this would be a separate group. We would not be an FCM. Most of our trading would not be in the futures markets anyway but OTC.
Chicago FX operation
- Thread starter Maverick74
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Well, the JBO is already established. My firm has two of them set up. Under that JBO, this would be a separate group. We would not be an FCM. Most of our trading would not be in the futures markets anyway but OTC.
Yes, OTC FX. Are your guys in Asia or just from Asia?
Both. The guys that trade in the prop account would be generating fees for the group and trading their capital (leveraged) with access to these markets. The guys on salary are getting salary plus bonus. I'm sure that will also generate trading rebates or payment for order flow as well. The fund would be a profit model. Really all three groups are generating fees or rebates. This model is not really all that different to most other prop operations.
The advantages to the traders will be one, getting access to markets they could never have access to. Two, learning how to trade options by my group. Three, getting a salary while learning to trade. And four, have the chance to trade in a large fund and get a piece of the profits.
I do not believe such an operation exists in Chicago. That's why I started this thread. Maybe someone will tell me I'm wrong and such an operation exists. I'm looking for information flow here. But you can't just say, yeah it exists, tell me who is doing it and I'll make some calls.
I'm just trying to fill a void and go where the opportunity is. There are 100's of BS FX bucket shops out there trading FX. There has to be a few good traders in that lot.
Heading to the beach now!
Quote from Maverick74:
I'm just trying to fill a void and go where the opportunity is. There are 100's of BS FX bucket shops out there trading FX. There has to be a few good traders in that lot.
Heading to the beach now!
if you want to fill a void how about something with nymex clearport and ice's otc instruments. have a group (A) making markets and a prop group (B) taking markets from A. this would be good with interest rate swaps with tradeweb and others. i haven't seen either accessible to smaller guys.
Quote from Maverick74:
Both. The guys that trade in the prop account would be generating fees for the group and trading their capital (leveraged) with access to these markets. The guys on salary are getting salary plus bonus. I'm sure that will also generate trading rebates or payment for order flow as well. The fund would be a profit model. Really all three groups are generating fees or rebates. This model is not really all that different to most other prop operations.
The advantages to the traders will be one, getting access to markets they could never have access to. Two, learning how to trade options by my group. Three, getting a salary while learning to trade. And four, have the chance to trade in a large fund and get a piece of the profits.
I do not believe such an operation exists in Chicago. That's why I started this thread. Maybe someone will tell me I'm wrong and such an operation exists. I'm looking for information flow here. But you can't just say, yeah it exists, tell me who is doing it and I'll make some calls.
I'm just trying to fill a void and go where the opportunity is. There are 100's of BS FX bucket shops out there trading FX. There has to be a few good traders in that lot.
Heading to the beach now!
Sounds like a facocked redistro model. The market making group would be holding all the cash within months.
Fimat doesn't offer otc access beyond swaps, it's SocGen's line of biz. There is no function for Mav's group to make markets in otc exotics, or vanilla for that matter; at least to anyone outside of their internal prop desk. Who else would call vtrader looking to do business? funny stuff. Salaried? How much? I think you'll need to beat Portillo's starting wage.
UBS has a good electronic model for FX exotics, as does SocGen; but these consist of dealers, not an open, transparent marketplace. The reason you're not finding an operation in Chicago is due to the fact that they[fx prop house] don't exist as autonomous organizations... they're called investment banks.
How long do you think it will take for these guys to blowup paying 15% in edge on every reverse down and out put? I didn't know vtrader had ANY experience in exotics.
In any event, I hope this comes to fruition unlike the "London operation". Good luck with it Mav and I'll sub to this thread looking for the followup.
Not true. Fimat offers everything OTC in FX. From vanilla to exotics to swaps and forwards. Trust me my friend, I had a meeting with the global head of FX for Fimat. PM me if you want his name and number. In fact, their FX operation has no relation to SocGen's FX business. And no, I never said our group was going to make markets.