Jump Trading to Regulators: Lit Markets Are Too Toxic For Us (UPDATED)
Alphacution provides an analysis of Jump Trading's recent announcement - via WSJ - that it intends to enter the equity wholesaling arena...
HOOD-lashed! Crypto PFOF is Here…
Like the Lock Ness monster and Big Foot, Alphacution has found evidence of crypto PFOF...
Happy Robinhood IPO Day, Suckers! Alphacution Publishes “The Robinhood Effect”
In this 193-page, 272-exhibit, 30,800-word case study, “The Robinhood Effect,” Alphacution brings together data and modeling from 25 entities – 11 retail brokers and 14 wholesale market makers – to explain a new phenomenon that now lives at the center of the US capital markets ecosystem. Alphacution’s most ambitious research project to date, this report covers the governing liquidity economics framework that defines PFOF rates, the mechanics of Robinhood’s aggressive retail brokerage model, the transformation of the retail brokerage industry, the sophisticated strategy architectures of wholesale market makers, and the “retail flow factors” that impact all market actors in the ecosystem – among many other themes and avenues for future research. An executive summary is available for review and download by open subscribers (w/ free registration). The complete case study is available to premium subscribers or via individual report purchase.
Jane Street, Latour, XTX: Orchestral Manoeuvres in the Dark…
It's rare to observe such consequential trading units from conception...
Hudson River Trading Advertises Next Move
In a rare example of public messaging, HFT and dark liquidity specialist, Hudson River Trading, overtly signals its move into the land of PFOF and price improvement. Independently, Tower Research Capital adds a clue that's related to the story. Here's why...
Robinhood IPO: An Elaborate Card Counting Assistance Platform (Updated)
On a lazy Thursday afternoon leading up to the US 4th of July holiday weekend, Robinhood unveils its IPO (S-1) document to the world. Here are some early highlights and analysis that can only be found at Alphacution...
The Retail Option Flow Factor: Hiding in Plain Sight
Similar to its early development of a retail stock flow factor, Alphacution turns its attention to measuring retail participation in options. As expected, the early visuals are illuminating...
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...
Information Waves and Timing: A Master Class By Jim Simons
Using our ecosystem framework as a guide, this is Alphacution's mechanical interpretation of how Jim Simons and the RenTec team gains a persistent edge on the competition; a master class of sorts that may be useful to your trading strategy development, as well...
Optiver vs. IMC: Battle of Amsterdam’s Option Powerhouses
The missing data finally showed up, and that led us to this comparison of Optiver US and IMC Financial Markets through year-end 2020...
