Thomas Peterffy: Elite Traders, please trade more! We are not making any $$$.

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Grandluxe

Thomas Peterffy talks high-frequency trading
WED 04 JUN 14 | 09:55 AM ET

Interactive Brokers' CEO and one of the top 50 richest Americans Thomas Peterffy expects the Fed's easy-money policy to continue unless the economy improves. He says if the market doesn't move, market makers like him don't make money, commenting on the anemic trading volumes.

http://video.cnbc.com/gallery/?video=3000281323

Please help our favorite broker, Interactive Brokers, to survive these tough times.
 
Petterfy has said his biggest regret is going public; by letting his competitors know how much he was making, it attracted lots of new money to the option market making business (Timber Hill), killing margins.
 
billyjoerob said:
Petterfy has said his biggest regret is going public; by letting his competitors know how much he was making, it attracted lots of new money to the option market making business (Timber Hill), killing margins.
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Why do you think he went public? I was thinking he took only a small part of his business public and held most privately; However, taking any part of the business public required disclosures about his business.

My thinking is that the brokerage businesses are making next to nothing on the clients cash held in accounts due to the close to 0% interest that is being earned. Prior to year 2008, the earnings reports I read for brokerage companies showed many earned half to most of their profit from this earned interest. The lower trading volumes and lower interest rates has to be putting some brokerage businesses at risk of having to sell out or closing down their business.
 
Catoosa said:
The lower trading volumes and lower interest rates has to be putting some brokerage businesses at risk of having to sell out or closing down their business.
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Wonder how long some of these brokerages they can last? Peterffy said as long as nothing significant happens in the world, the inertia will simply perpetuate.

I guess when advertisers start pulling their adverts off ET........:D
 
Grandluxe said:
Thomas Peterffy talks high-frequency trading
WED 04 JUN 14 | 09:55 AM ET

Interactive Brokers' CEO and one of the top 50 richest Americans Thomas Peterffy expects the Fed's easy-money policy to continue unless the economy improves. He says if the market doesn't move, market makers like him don't make money, commenting on the anemic trading volumes.

http://video.cnbc.com/gallery/?video=3000281323

Please help our favorite broker, Interactive Brokers, to survive these tough times.
More...

He did not see any value in HFT as liquidity providers this implies major change of attitude from brokers towards HFT...
 
dealmaker said:
He did not see any value in HFT as liquidity providers this implies major change of attitude from brokers towards HFT...
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we need hft or else there will be 50 cent wide spreads in everything. they told me this

50-cent-01.gif

scary aint it
 
see? i stopped trade-poor Mr Peterffly starts crying. unfortunately for both of us-it's a chain reaction with no end on sight. i personally think he made a great move by going public. like i said many years ago- he saw it's coming long time ago and rightly sell part of his dying business to the public. what's wrong with that? how is this bad decision? i'm missing something?
 
Bob111 said:
see? i stopped trade-poor Mr Peterffly starts crying. unfortunately for both of us-it's a chain reaction with no end on sight. i personally think he made a great move by going public. like i said many years ago- he saw it's coming long time ago and rightly sell part of his dying business to the public. what's wrong with that? how is this bad decision? i'm missing something?
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Assets in accounts is rising rapidly, currently $48 billion, and the stock waas up 80% last year.
 
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