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

Discussion in 'Wall St. News' started by Grandluxe, Jun 4, 2014.

  1. 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.

    Please help our favorite broker, Interactive Brokers, to survive these tough times.
  2. 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.
  3. Catoosa


    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.
  4. Baron

    Baron ET Founder

    Example: Earlier today another ET member was inquiring about getting into options market making.
  5. 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
  6. dealmaker


    He did not see any value in HFT as liquidity providers this implies major change of attitude from brokers towards HFT...

  7. we need hft or else there will be 50 cent wide spreads in everything. they told me this

    scary aint it
  8. Bob111


    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?
  9. just21


    Assets in accounts is rising rapidly, currently $48 billion, and the stock waas up 80% last year.
    #10     Jun 4, 2014