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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
days.
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.
Historically,
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
positions.
HFT: Market Structure Trumps Talent Again?
What
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.
As
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.
About Wolverine
Established
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,
and markets.
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.
As valuation
arbitrage traders, we employ strategies such as index arbitrage,
volatility dispersion trading, basket trading, sector trading,
statistical arbitrage, and quantitative strategies.
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http://www.youtube.com/watch?v=sLGdvFtkso4
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Gram Parsons - Brass Buttons
Maybe that was yesterday's metals action.
Unrelated to this morning's action
Maybe obviously not
robots are taking over.
The real question is: Can they make good coffee!
Not only can they make coffee, they're FUUUUNNNKKKKAAAYYY in the process:
http://www.youtube.com/watch?v=6EPNOhwCNMU
Waddell & Reed, and now Wolverine?
It's all good so long as JPM, Goldman Sachs are in fine shape (gettin' central banksta' love), as as long as the Federal Reserve's stellar and ever-growing balance sheet(s) are in such fine shape - ringing in massive profits for their most important constituency - you the taxpayer.
I am 100% confident in the Federal Reserve's Balance Sheet and ability to stem inflation in 15 minutes.
TD you hinted yesterday that this might have something to do with the drop in Silver and Gold. How so? Did they have large holdings in precious metals that they could liquidate? I was leaning more towards the standard profit taking that seems to occur every 2-3 weeks since this run by the 2 has began.
Relax folks. It's called culling the herd.
As the SEC actions intensify, many more firms will mysteriously cease operations.
The world don't need no market makers,
The world don't need no circuit breakers,
The world just needs more movers, less shakers,
The world don't need no market makers...
*sing in throaty blues style*
Ironic that the name is Wolverine.
ORI
http://aadivaahan.wordpress.com
Gold stocks getting blowtorched pre-market....
And high fliers like CRM with a P/E ratio over 200 are getting ramped again.
Gee, why didn't Eric King interview that company's CEO instead??
LOL...
It is interesting to see Silver and Gold diverge from each other. A rare event.
Thanks for the chuckle Robo.
PS: Crash J.P. Morgan, Buy Silver
my source pegs P/E at 262......reckon the world's record must be in the 1000's, huh? but I'll wager 25c they run that bitch up to at least 300. Not sure what exactly is your point Robo, but sure confirms the insanity of the so-called "market"
trolls don't have a point
tanks for clearing that up for me, taraxias.... BTW how's you get ahold of a photo of my brother?
It's all fun & games for now... but when an army of cats riding roombas takes over the world & demands our tuna NOBODY will laugh :(
So you think a army of cats riding roombas will take over the world...
interesting....
Do you start taking your medicine at 10 o'clock?
Maybe you should start taking them when you wake up.
OR RUN FOR PRESIDENT IN 2012! :)
Seriously? Gold and Silver are moving in tandem. You were kidding, right?
They'll shift a bit more focus to OTC products and margins will be right back to where they were before HFTs started stealing their spread.
Hint: PMMs and IDBs employ machines to make $$ as well..
Amen - at least one individual on this whole thread has an inkling of industry insight...
NEWS FLASH - Wolverine employs the same HFT tactics as the rest.
They are no different than Getco, Jump, Hudson River, Quantlabs and the list goes on (not to mention the big boys)
Unfortunately for them, their stategies/technology laggs the competition - hard to make money arbing NYSE/ARCA from their 32 A of A colo...
Articles like this show how much a joke zerohedge is.
I also love how you call wolverine a major source of liquidity, are you kidding?
You guys are such clowns.
4th tier shop, bk eh would not surprise me