Chicago option MM start-up

Hi all,

I am currently a trader at a major Chicago based option market making firm. Myself and several associates have recently made the decision to depart to form our own trading group. We are seeking margin capital in the low to mid 7 figures, preferably from an experienced source willing to grow with us. Do you know of any firms or individuals interested in this type of backer arrangement?

Thanks,

 

With all due respect, how can you consider departing without capital?

Mark

 

Put 7 figures of your own money up and maybe some additional capital will join you. And unless you have pilfered your previous employer's technology, what gives you the confidence to presume that you can compete? If you're planning on being just another Actant or similar vendor's customer then game, set, match - you lose.

 

try Citadel- if you're up YTD I'm sure they would bite.

The world is your Oyster....

THE WORLD IS AN (ONE'S) OYSTER - "If you have a lot of money, you can have anything you want. The proverb first appears in Shakespeare's play 'The Merry Wives of Windsor' (1600).'Falstaff: I will not lend thee a penny. Pistol: Why, then, the world's mine oyster, Which I with sword will open.' Act II, Scene II."

 

The market making business is not all that great these days. Unless you have solid deals in place for payment for order flow and things of that sort you're way behind the curve. The fixed costs these days have gone through the roof too. Hardware, software, data vendors, seat leases and the associated fees are pretty steep.

Which exchanges are you thinking about becoming members on? What products are you looking to trade? Have you cut a deal with a clearing firm and do you have a firm price which you know the firm you just left is paying to them? What kind of back office personnel do you have lined up? Have you found the appropriate type of attorney and accounting firms? How have you structured the business for tax and legal issues?

What are you offering the person who brings capital to the table in terms of both payout and their tax treatment?

What’s your business plan like? Can you provide a verifiable track record? Are the U4 forms of all the people in your group totally clean? Have you set up your B/D already? How far along the process are you?

I don’t think ET is a place to be looking for capital but since you asked you might want to include the answers to some of those questions and a myriad of others. As someone who put together several different MM firms over the past 20 years I can tell you it’s a lot of work.