Trading Tech Talk 11: The Stealth Options Exchange
CTO Interview Segment: Today's guest is Joe Corona, Director of Strategic Planning and Product Strategy at LiquidPoint, LLC.
He discusses:
- An overview of his background in the derivatives markets
- An overview of LiquidPoint, which is part of ConvergEx Group
- Who is the typical end user?
- Is it true that LiquidPoint would be the equivalent of the #7 options exchange if you aggregated all of the flow?
- What are the main LiquidPoint algo types and what area of the derivatives market are they aimed at?
- How does LiquidPoint's algo address the many issues associated with executing multi-leg spreads across exchanges?
- Will their spread algo go the extra step and take delta risk on behalf of the client to execute an order?
- Does he feel that we have reached the point of diminishing returns and increasing risk whenever a new venue is added to the marketplace?
- His response to the post-Flashboys hysteria - particularly on the subject of dark pools?
- What was the impetus behind the recent software merger with Actant? What was the impetus behind your merger with LiveVol?
The Inbox: Listener questions and comments
- Question from Neal Finn - You discussed the tech problems with Mini options on a recent episode. NASDAQ released a notice two weeks ago saying they will no longer add new series to the existing Minis. Do you expect other exchanges to follow suit? Is this the end of Mini options?
- Question from StandingO - The options insider complies a significant amount of unusual activity on a daily basis. I find some of the more obviously illegal trades disturbing, such as the recent well-timed trades in DG ahead of the Carl Icahn announcement. What sort of technology does the SEC and CFTC use to track these trades and trace them back to their source? Or am I living in a dreamworld and do these guys typically get away with it?
