Timber hill may be closed soon

Discussion in 'Wall St. News' started by marketsurfer, Jun 17, 2013.

  1. http://online.barrons.com/article/SB50001424052748704878904578537352974952458.html?mod=BOL_twm_mw

    Interactive Brokers Group specializes in fast, automated trading, but now is the time to buy and hold its shares (ticker: IBKR).

    Interactive Brokers may make a decision within 18 months that lifts the biggest cloud over the firm's stock price: its Timber Hill market-making unit.

    Nothing has been announced, but there is a sense at the highest levels of the options industry that opportunities may ....
  2. lwlee


    Not understanding how unchaining Timber Hill is going to unlock some magical value in IB.
  3. southall


    If you listen to the last conference call, he said he happy to make a modest profit from Timber hill. But not losses. If the competition is forced out first, then the market making business becomes more profitable for everyone left. Everyone is hurting but IB got the brokerage side too and so might be able to out last the competition.

    Also if we get another down leg in the markets soon, and the volatility that goes with it, that will normally mean bumper profits for Timber hill.
  4. Sad that THI/Peterffy may become a thing of the past. They've been a source of millions in profits for me.... RIP.
  5. y ar u here if u have millions? are you a nut?
  6. You have entered a combat zone, and ask why millionaires are here.

    Supposedly great traders check in to determine what the masses are seeing, others come here to collect data and information, including trading techniques.

    If this isn't why you're here you're wasting your time, unless you're entertained by these kinds of threads or like to debate.

  7. Occam


    I hope they're right -- IB's association with Timber Hill represents a serious potential conflict of interest, the hazard of which is greatest for the most active traders. I would not use a broker that reserves the right to shuffle their orders off to an "affiliate" rather than the best bid/offer venue at the time.

    If IB ever gets the good sense to formally separate the two or shutter Timber Hill, I might actually open up an account with them again.
  8. Who do you use now? All the major retail brokers "shuffle your order" off to market makers like Knight or Citadel before it goes to market, and your broker gets their payment for order flow as a kickback. Not sure what the big difference is that at IB those are two units in the same company, instead of two companies.