Optiver Holding B.V.
TypePrivate
IndustryFinancial services
FoundedApril 9, 1986 (1986-04-09)
FounderJohann Kaemingk
Headquarters
Amsterdam
,
Netherlands
Key people
Jan Boomaars (CEO)
ProductsSecurities trading
Increase €1.6 billion (2022)[1]
Increase €1.3 billion (2022)[1]
Total assetsIncrease €61.6 billion (2022)[1]
Total equityIncrease €3.6 billion (2022)[1]
Number of employees
1,709[1] (2022)
Websiteoptiver.com

Optiver Holding B.V. is a proprietary trading firm and market maker for various exchange-listed financial instruments. Its name derives from the Dutch optieverhandelaar, or "option trader".[2][3] The company is privately owned. Optiver trades listed derivatives, cash equities, exchange-traded funds, bonds, and foreign exchange.

History

Optiver was founded by Johann Kaemingk on April 9, 1986, as a market maker in options on the European Options Exchange (EOE), which is now Euronext.[4] Optiver is a member of the European Principal Traders Association (FIA EPTA), FIA Principal Trading Group (PTG) in the US and FIA Japan.[5]

In November 2016, Optiver was reported to have joined a consortium to build a faster data transmission network between Chicago and Tokyo.[6]

In December 2017, Optiver joined with Equiduct to offer a one-stop shop for best execution.[7]

In November 2018, Utrecht University and Optiver partnered to create an Algorithms in Finance course.[8]

In June 2019, Optiver joined its US-based rival, Virtu, in funding Equiduct, a competitor to national stock exchanges and trading venues.[9]

In April 2021, Optiver expanded further into the Asia-Pacific region with an office in Singapore, with a planned focus on commodity and equity products. It joined many other major financial services firms in doing so. The firm first made its presence in the region in Australia in 1996, then Taipei in 2005, then Hong Kong in 2007, and then Shanghai in 2012.[10]

In June 2022, Optiver joined Aquis Exchange.[11]

In September 2022, the firm became the latest trading member on the Vienna Stock Exchange.[12]

Fines

For 11 days in March 2007, Optiver engaged in 19 instances of an illegal manipulation scheme known as "banging the close", with a minimum of 5 being noted as successful. It involves executing trades of large volumes near the close, with the intention of manipulating closing prices. The scheme was executed on 3 New York Mercantile Exchange (NYMEX) listed futures contract, including New York Harbor Heating Oil, New York Harbor Reformulated Gasoline Blendstock and West Texas Intermediate (WTI) Light Sweet Crude Oil.[13]

Optiver factored in $19.3 million into its 2010 annual report towards this case.[14] The case was settled in 2012, where Optiver was fined $14 million, of which $1 million was part of profit disgorgement. With effect for 2 years, Optiver was barred from trading any US oil futures in the last 3 minutes before close. Several traders were also handed out bans for trading commodities, ranging from 2 to 8 years in length.[15][14]

See also

References

  1. 1 2 3 4 5 "Optiver Annual Review 2022" (PDF). Optiver.
  2. ↑ Detrixhe, John (18 September 2015). "Optiver Hires Former Goldman Partner Boomaars as Europe CEO" – via Bloomberg.
  3. ↑ Detrixhe, John; de Jong, David; David, Ruth (18 June 2015). "HFT Powerhouse Amsterdam Glimpsed Through Speed-Trader IPO" – via Bloomberg.
  4. ↑ "Optiver – About Us".
  5. ↑ "FIA EPTA Members".
  6. ↑ Lewis, Brian (11 November 2016). "Traders Plan Supercharged Chicago-to-Tokyo Network" – via Bloomberg.
  7. ↑ "Optiver & Equiduct offer best execution for equities and ETFs". Automated Trader Ltd. 20 December 2017 – via www.automatedtrader.net.
  8. ↑ "Optiver, Utrecht University partner on finance course".
  9. ↑ Agini, Samuel. "High-speed traders Optiver and Virtu back EU trading venue". www.fnlondon.com. Retrieved 2022-09-02.
  10. ↑ "Optiver expands into Asia Pacific with Singapore office - The TRADE". www.thetradenews.com. Retrieved 2022-09-02.
  11. ↑ "Optiver joins Aquis Exchange - The TRADE". www.thetradenews.com. Retrieved 2022-09-02.
  12. ↑ "Optiver becomes latest trading member on the Vienna Stock Exchange - The TRADE". www.thetradenews.com. Retrieved 2022-09-02.
  13. ↑ Commodity Futures Trading Commission. "CFTC Charges Optiver Holding BV, Two Subsidiaries, and High-Ranking Employees with Manipulation of NYMEX Crude Oil, Heating Oil, and Gasoline Futures Contracts | CFTC". Retrieved 2024-01-04.
  14. 1 2 "High-frequency trader Optiver pays $14 million in oil manipulation case | Reuters". Retrieved 2024-01-04.
  15. ↑ Commodity Futures Trading Commission. "Federal Court Orders $14 Million in Fines and Disgorgement Stemming from CFTC Charges against Optiver and Others for Manipulation of NYMEX Crude Oil, Heating Oil, and Gasoline Futures Contracts and Making False Statements | CFTC". Retrieved 2024-01-04.
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