Erik Swanson’s the CEO of Simplex Trading…
While unknown to many, the Chicago-based trading firm is one of the top market makers in U.S. equity options—providing liquidity in (almost) every listed options contract, and in recent times, transacting upwards of 2-million contracts daily.
In our chat, Erik pulls back the curtain, giving a rare insight to how market makers operate; from quoting to hedging, and the complexities that take place in between.
Topics & Timestamps:
Please note: Exact times will vary depending on current ads.
- 01:40 – Trader to CEO, about Simplex, being a registered market maker.
- 06:40 – Options market making: quoting, fair value, hedging, cash equities, risk.
- 33:50 – Gamestop saga, the unimaginable rise of options volume (2021).
- 41:00 – Payment for order flow: common criticisms, mechanics of order routing.
- 50:10 – Maintaining an edge over competing firms.