Wolverine Trading In Trouble?
From FMX Connect
Update: Reliable sources in the trading community with closer ties to Wolverine assured us that the story published about Wolverine Trading has zero validity.
In age where the velocity of information, true or false, has increased tenfold with sources like twitter and internet networks, it is important to follow up these type of rumors as they could hamper a firms ability to transact business. We are inclined to believe subsequent information relayed to us that this story is untrue.
Wolverine Trading In Trouble
We received contacts from several independent sources
in our community yesterday that Wolverine Trading, a PMM, options
market-making firm in everything from global equities to commodities may
have solvency issues. As of this writing this is unsubstantiated.
Sources were CME floor members and financial analysts familiar with
their business model. The only physical sign we saw was a lack of
physical presence in some major commodity option pits for the last two
If this is true it would be a terrible thing for the
markets, as Wolverine was a classic market-making firm, one that
provided backstop liquidity in all kinds of assets.
the biggest market-making firms almost always run the risk of putting
themselves out of business as spreads narrow. The smarter ones of which
wolverine is one, seek out other areas to trade. Some look for more
complex, lower correlation strategies on which they put speculative
HFT: Market Structure Trumps Talent Again?
is troubling here is that this just might be symptomatic of the
increased predation of HFT algorithms with no actual obligations to
provide liquidity gaming those that have obligations, like Wolverine.
Our friends at ZeroHedge
are no less sanguine when they discuss this, using terms like Quote
Stuffing, and Front Running to game marketmaking algorithms.
an aside, HFT frivolous bids and banks in search of the bigger fool on
which to unload their own stocks to are a set up for liquidity disaster.
But now, if wolverine is in trouble, another obstacle to an outright
market debacle has been removed.
Specialists (Wolverine was not
one) were in the past characterized as conflicted and having a license
to steal. They were sheep shearers for sure, but in this environment,
the regulatory, technological and economic factors are fixing to skin
the sheep as a final exit strategy in the U.S. market.
in 1994, our proprietary trading group, Wolverine Trading, LLC, engages
in market making and valuation arbitrage across global markets. We
aggregate information from our vast exchange network and overlay
quantitative data sets. Our electronic trading technology allows us to
capture theoretical pricing discrepancies across exchanges, products,
As a market maker, we provide continuous bid and
offer quotations on a broad range of listed securities and derivatives,
including: equities and equity options; equity indexes and equity index
options; futures and options on futures; Exchange Traded Funds (ETFs)
and ETF options; and cash bonds. Our quotes add liquidity and
transparency to the markets. Wolverine is a leading liquidity provider
in global exchange-listed equity derivatives.
arbitrage traders, we employ strategies such as index arbitrage,
volatility dispersion trading, basket trading, sector trading,
statistical arbitrage, and quantitative strategies.