Who Is 'Latour Trading' And How Dare They Upstage Goldman?

Tyler Durden's picture

As long-term readers recall, the observation of Goldman's dominant presence in the NYSE's weekly program trading reports by Zero Hedge back in early 2009 was one of the key drivers that set in motion the backlash against algorithmic trading and HFT which back in 2009 was the pinnacle of fringe topics and has since become a daily talking point and market scapegoat du jour on days when stocks are down (but never up). It also drew attention to Goldman's prop trading division which Zero Hedge was the first and only vocal opponent of, and has since been demolished courtesy of the Volcker Rule, an event which both Moody's and Alliance Bernstein now say could cost the bank dearly in top and bottom line, yet which Goldman told us on the record "represents approximately 10% of this year’s reported net revenue." Guess it was more, huh... Yet the same NYSE weekly program trading update indicates that Goldman, up until now a monolith in NYSE program trading, has just lost its crown in that field as well. The new king. A firm called Latour Trading, which in the last week traded 484.6 million shares in principal strategies. Which begs the question: just who is this Latour Trading which dares to upstage the firm that does god's work on earth. Alas, their website has been less than forthright. Inquiring minds certainly want to know.

From the NYSE:

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abugarance's picture

probably a blankenstein+gary cohen new PA trading vehicle

Earl of Chiswick's picture

David Faucon


formerly of

Tower Research Capital LLC


and then the story becomes to bizzaro to say any more just search Samarth Agrawal

beastie's picture

You nailed it but everyone will ignore your comment. Also seem to have ties to Limewire.


What does it all mean's picture

I don't understand...  Revenue does not mean profit.  Volume traded does not mean profit either.... 

This reminds me of Groupon, where they can claim almost half a billion dollar in revenue, except still net negative.  Regardless, thanks to Earl of Chiswick info, it is evident that NYSE/ARCA "floor" members are just a fascade...  There is no point having a floor any more, everything is electronic.

phyuckyiu's picture

The link to latour leads to a blank page for me. I love it when Zero Hedge makes them run for cover. Definitely a front company, why bother hiding the fraud, nobody gives a shit!

Pbn2Au's picture

+1 Blank page indeed.  Check out the source for the page...<HTML></HTML>  seriously

SDRII's picture

Brewster Jennings & Associates (google it)

Freddie's picture

What is this?  A CIA air cargo and algo trading company?  The NSA computers on their lunch break?

CuriousPasserby's picture

That's what I immediately thought. They think they have to do something to stop the impending doom.

phyuckyiu's picture

Limewire was a good place to get midget pr0n. Seems like a perfect fit, the SEC will get preferential torrent bandwith.

CIABS's picture


sorry to nitpick, but you should improve your proofreading.  this headline asks the very interesting question "who" is latour trading, but in the body of the piece you write "how" instead of "who".  yeah, we all know what you meant, but this happens a lot, and it doesn't reflect well on your outstanding website.

JohnG's picture

Have you made a donation to ZH lately?  No?

Complaining and nitpicking over "vocabulary" is a sorry way to support free information.

There's a link at the top for donations.

knukles's picture

tyler(s) represent(s) a proper name(s) and thus should be capitalized as per; Tyler(s)


Problem Is's picture

Nice Bitch-Slap, knuckle(s)...

jeff montanye's picture

as a picker of nits myself, i don't think you're sorry.  disingenuous, yes.

The Deleuzian's picture

Holy Cow!!!  Thanx for sharing E of Chi

POTUS's picture

David Faucon - "person credited with designing SocGen's original HFT program." Left SocGen with 4 others to go to Tower -- last SocGen HFT guy to leave was dumb enough to actually try and take the HFT code with him. So............ he developed HFT program for large French Bank -- so we know he knows how to use leverage (lots of leverage) and he should be adept at hiding trades ... should make for interesting story line 

disabledvet's picture

Hey it's the President!

imaginalis's picture

More HFT? David FaucOFF!

papaswamp's picture

Mark Gorton is the bigwig and main man of Tower and Limewire, LimeGroup, etc.. Got his EE from Yale, masters at Stanford. Was an EE for Martin Marietta...then Credit Sussie (hmmm). 

euclidean's picture

EoC - a big thanks

US jury starts hearing SocGen code theft case http://is.gd/zJY97K

"testified that Tower had wooed Agrawal in part to establish a competitor within the company to David Faucon, the person credited with designing the original SocGen system. Faucon is chief executive of an arm of Tower." ... "copying and printing the Societe Generale code last year so he could build a similar system for Tower Research Capital LLC hedge fund, which had offered him a job."

Wakanda's picture

Nice sleuthing E of C!  Bizzaro world indeed.

6 days until Black Monday II

ziggy59's picture

"Key Management Managing Director Mark Gorton worked in the proprietary trading department of Credit Suisse First Boston. Mark traded there for 4 1/2 years and built sophisticated tools used to analyze the markets. In the spring of 1998, he left Credit Suisse First Boston to set up Tower Research Capital LLC. Mr. Gorton's professional and educational background provides an unusual combination of math skills and financial knowledge to create and orchestrate the trading strategies utilized at Tower."

max2205's picture

Goldman mini-me


Don Birnam's picture

" 'Who are they ?' Who do you think we are !"

Behold the trading arm of Skynet...


ADirtyChapCalledWanker's picture

Listen up boys, girls, and Chairsatans. 

Tower Research Capital, according to the NFA, has 5 people of 10 listed with 10% or more financial interest [ http://www.nfa.futures.org/BasicNet/Details.aspx?entityid=GKhDZYk5r5s%3d ]. They are as follows: 

William ChuangDavid FauconJohn MartelloNicolas NiquetDavid Wichs . 

Now, I'm just some 19 year old peon with an interest in the kind of financial porn that ZH puts out, so some fellow ZH'ers will have to help me with a few things.

When you go to each of these guy's pages, towards the bottom it gives two dates along with 'Principal Pending' and 'Principal Approved.' From what I can gather, this signals when they begin their affiliation with the firm, but again, I need some help navigating this financial speak. But oddly enough, all of these guys got on board (I think?) with Tower recently all within weeks of one another. 

Chuang - Pending - 5/9/2011
    Approved - 6/2/2011

Faucon - Pending - 5/9/2011 
    Approved - 5/25/2011

Martello - Pending - 5/31/2011
     Approved - 6/21/2011

Niquet - Pending - 8/16/2011
   Approved - 9/2/2011

Wichs - Approved - 4/28/2011

Wichs with Tower Research Capital Europe - Pending - 4/16/2004
Approved - 7/19/2004

Curiously enough, Gorton himself does not have a 10% more interest in Tower. In fact, Chuagn, Faucon, Martello, and Niquet all have a 10% or more interest but have all been there the shortest amount of time. Who, I wonder, had such high stakes before these stooges came along?

I've also managed to dig up Latour's address and phone number. Their address is 10th floor, 377 Broadway, New York, NY 10013. The phone number is (212) 219-6000. 

Surprisingly enough, Tower Research lists themselves at the same address, except on the 11th floor. And the phone number? You guessed it - (212) 219-6000. 

So the two are literally on top of each other. And it also seems, at least to me, that whoever is pulling the strings at Tower is doing the same at Latour.

The plot thickens yet again when it is discovered that Lime Brokerage also had the same number on the list as Latour (admittedly, it is listed as (212) 219-600, but the lack of a single digit does not mislead the hounds). The page which Lime and Latour's phone numbers listed on, when clicked through google, lead straight to the NYSE page. But thanks to cache, we still have the archives of the internet. Oddly enough, the page was last updated on October 1st, 2011 (presumably when it was rerouted or destroyed). Why, then, is Lime's phone number --a mere 9 days later-- (212) 824-5000? Shell companies galore, or what? I'm still new to all of this, so again, help me out. 

I've also found a site that shows their SEC filings, but you've got to be a member to see them. So if any ZH'ers are a member of MarketBrief, follow the link and let us know what you find ( http://marketbrief.com/latour-trading-llc?secwatch ).  

Kayman's picture


Thanks for the sleuthing.  Who are they ?  One of the many cockroaches slithering around on Wall Street.  Without the Fed (and the Fed's unlimited backing from the American taxpayer) they would all be crushed under the Heel of a Free Market.

Earl of Chiswick's picture

splendid work adi

isn't it wonderful when Master ZH tosses us a bone to gnaw on ... splendid indeed

dark pools of soros's picture

Boiler Room for Algos that don't even have to con anyone directly..  just get the FED to pawn off any of their bad bets to the 'sophisticated sheeple'

CuriousPasserby's picture

Having the same phone number is eaxy to explain. Oftentimes new businesses start out sharing a phone/desk/secretary with other small businesses until they do well enough to afford their own.

Bolweevil's picture

More trades than the Golden Sack and they can't afford a phone? You're banned from posting for one week.

philipat's picture

I wonder if there is an equivalent "Other Income" entry in the Squid's PNL?

Akrunner907's picture

Go talk with Nicolas Mascio, he can help shed some light on them.  He handled 106R transfers for Latour in 2009.





mw1's picture

A copy of their 2010 audited financial statements as filed with the SEC:  http://www.sec.gov/Archives/edgar/vprr/11/9999999997-11-005691

ADirtyChapCalledWanker's picture

How can Latour, with $400 million and some change, compete with GS at all?

Also, from the statement:

"Latour Trading LLC (the “Company”) is limited liability company and wholly-owned subsidiary of Tower Research Capital Investments LLC (the “Parent”). Tower Research Capital LLC is the managing member (“Managing Member”) of the Company. The Company’s operations consist primarily of proprietary trading in, but not limited to, equities and futures markets in the United States

The Company is a broker-dealer registered with the Securities and Exchange Commission (“SEC”) and is a member of the CBOE Stock Exchange (“CBSX”), which is its designated examining authority."

So they do prop trading, but what else besides equities and futures? 

To anyone with legal experience, are they only required to disclose that they trade in equities and futures while legally being able to trade in other instruments? The whole "but not limited to" leaves a lot of room to squirm.

Also, the phone number that was listed by NYSE does not match up to the one filed to the SEC, which is (917) 388-8619. This is a cell phone number. Who runs a $400 million operation from a cell phone?! Or is this standard industry procedure or something?