Alphacution Publishes “XTX [Invades] Markets” Case Study
In this 87-page, 83-exhibit, 22,700-word case study, "XTX [Invades] Markets," Alphacution publishes its findings - a truly incredible story - about the youngest proprietary trading company to cross the $1 billion revenue threshold in the modern markets era - and the founder, Alex Gerko, who has led that run. Based in London and breaking into the top 10 ranks of overall FX traders before its second birthday, conventional reporting states that XTX Markets Limited was spun out of quant hedge fund manager, GSA Capital Partners, in 2015. This is mostly true. However, the full story of Gerko and his XTX group has never properly been told. In this case study, Alphacution has gone further than it’s ever gone before. Finding data in places like Singapore, France, and India - places where XTX has staked satellites of Gerko’s vision - to paint a clearer picture of how, and maybe why, the company has managed to become so expansive in such a short period of time. Alphacution will not be the last to tell a more complete version of XTX’s story, but we may be the first to attempt it. Our version of that story, the beginnings of which are known to very few insiders, starts in October 2010... This and related case studies are available to premium subscribers or via individual document purchase.
Spooning: Morgan Stanley and Robinhood on Retail Options
Turns out, UBS Securities may have some stiff competition for who can exit the wholesale market making business faster. Alphacution updates some modeling on Morgan Stanley & Co - and its strange bedfellow, Robinhood - on the eve of Q3 2022 PFOF reports...
Fork It! UBS Securities Exiting Retail Wholesaling
We've seen it coming for a long time. There were many clues along the way from which to anchor a prediction. Now, the evidence is too dramatic to ignore: UBS Securities is exiting the retail equity wholesale market making business. Alphacution rolls out its case, along with other key findings...
Launchpad: Hudson River Trading Enters Retail Wholesaling
In mid-2021, Hudson River Trading announced - via the WSJ - that it would be entering the retail equity wholesaling game in 2022. That day has arrived. This is what Alphacution has found so far...
GTS Securities, SDP Latour: Things That Go Up…
Competition for structural alpha is more fierce than anywhere else in the capital markets ecosystem because the potential risk-adjusted returns are so extraordinary. Therefore, we find new "green shoots" of success in this space noteworthy...
Two Sigma Securities and the Competitive Market Landscape
In this Feed post, Alphacution returns to an important question: Is there enough theoretical alpha still available for another highly successful nested alpha strategy architecture (NASA) player, like Citadel or SIG? The combo of Two Sigma Investments and Two Sigma Securities was - and still is - the focal point for this question...
Single-Stock ETFs And The Market For Financial Playthings
This week, Alphacution goes overboard to create a detailed backdrop for what some are calling a frenzy for single-stock ETFs as well as what that could mean for the concept of a "synthetically singular global market."
Virtu Financial’s Latest Storyboard
Alphacution updates its ongoing review of Virtu Financial with the latest 2022 financial and operational data...
SEC Proposing Auctions?! Let’s Understand Liquidity Economics First
Though the financial press highlighted a proposal to consider auctions in US equities for retail order flow, the SEC actually proposed 6 areas of interest for market structure rule changes. Alphacution presents its case for what's truly at issue here...
XTX Deploys Ghost Protocol in US Equity Markets
Alphacution updates its ongoing analysis of emerging US equity market making powerhouse, XTX Markets, and provides a clue as to where it may be finding its edge...
