Virtu Americas: Lessons in Risk Disposal (Updated)
Alphacution delivers a new comparison of Virtu Americas and Citadel Securities to explore the objectives of risk warehousing and risk disposal...
Who’s Playing Championship Tetris? Gabe Plotkin, Stevie Cohen, or Ken Griffin?
A master class in risk management was performed during the peak of the GameStop meme stock frenzy. The question is: Who performed it?
HOOD-lashed! Crypto PFOF is Here…
Like the Lock Ness monster and Big Foot, Alphacution has found evidence of crypto PFOF...
Jane Street’s Machine
Bloomberg's Tom Maloney recently shed some light on Jane Street's jaw-dropping revenue figure for the 12 months ending March 2021. Here, Alphacution circles back to provide a kaleidoscopic view of what that success looks like from a trading strategy perspective...
Fix the Spread! A Comparison of Price Improvement by Wholesale Market Makers
Alphacution expands upon an outstanding analysis by BestEx Research on PFOF with additional context on price improvement by leading wholesale market makers.
And the #1 Market Maker is…
There are many ways to rank prop firms and market makers, given the right data. However, depending on the market or the metric used, rankings will differ. Outside of our case studies, here are some figures we've never shared on the Feed, and the implications are likely to be quite consequential for the road ahead...
Bloomberg, Forbes: Alphacution Scores Press Twofer
"There is nothing to writing. All you do is sit down at a typewriter and bleed."Ernest Hemingway Tuesday, April 6, 2021 was a good day for Alphacution in the press... The morning started with a feature by Bloomberg Editor Tom Maloney, "Citadel Gets the Spotlight," wherein he tells the story of Ken Griffin and Citadel Securities' rise as major trading force in the post GFC landscape and - most notably since GameStop - as a recent focal point of politicians and regulators. (I'm sure Ken is not thrilled with the title image.) Here at Alphacution, this article will be remembered primarily for two things: First, for providing a few useful financial tidbits - and, second, for placing a few of our words in the largest font in our history to date - Should it have been "Amazonization" or "Amazonification"? Either way, you get the gist... One more thing on this: I may have told this tale before, but after throwing an unsolicited sharp elbow in Tom's direction in our December [...]
Pulling Your Strings: How Retail Brokers Influence Trading Behavior (Or Not), By Design
Alphacution adds to its library of evidence that retail brokerage platforms specifically decide how, when, and if to influence the trading behavior of their clients...
Price Improvement: A Sacrificial Cost of the Trade
Alphacution provides numbers, pictures and rationale for "price improvement" - in the context of captive retail order flow - having an indelible function that is different than what you have been told by those who traffic in it...
Now You See Me: What The Bloomberg Opinion Guy Misses About Market Structure Mechanics
Leveraging numbers and narrative, Alphacution builds a higher-dimension analysis of market structure mechanics on top of Bloomberg Opinion's Matt Levine's recent manifesto on payment for order flow (PFOF). Disclaimer: No unsolicited elbows were thrown during the creation of this Feed post...
