Eric Swanson is CEO of Simplex Trading…
What many people don’t know is that the Chicago-based trading firm is one of the top market makers in U.S. equity options, providing liquidity to (almost) all listed options contracts. and recently traded more than 2 million contracts daily.
During our chat, Eric pulled back the curtain and gave us valuable insight into how market makers work. Complexity from quoting to hedging and everything in between.
Topic and Timestamp:
Note: Exact time depends on current ad.
- 01:40 – From trader to CEO on Simplex, a registered market maker.
- 06:40 – Options market making: quotes, fair value, hedging, cash equities, risk.
- 33:50 – The story of Gamestop, the unimaginable increase in options trading volume (2021).
- 41:00 – Order Flow Payments: Common Criticisms, How Order Routing Works.
- 50:10 – Maintain an edge over your competitors.