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chiral3
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Total Posts: 5061
Joined: Mar 2004
 
Posted: 2016-05-25 14:30
I trade ccy to delta hedge some of my foreign exposure but, apart from this, I am oblivious. Can someone that is closer to FX tell me what the deal is with XTX? I understand that they were spun off from GSA and have ties to DB. Obviously the name is a tip to quant trading.

Nonius is Satoshi Nakamoto. 物の哀れ

HitmanH


Total Posts: 462
Joined: Apr 2005
 
Posted: 2016-05-25 17:31
Spin off from GSA - as a home for their more MM / LP activities (which often, given capacity, infrastructure costs, Sharpe etc - fits more into a 'prop' structure than a hedge fund where you'll struggle to take home more than 20% of perf).

Not just FX - but that is bread & butter - and where Gerko made is mark initially.

Luciender


Total Posts: 75
Joined: Aug 2008
 
Posted: 2016-05-25 22:49
Apparently 4th largest spot fx dealer by marketshare, if the Euromoney survey is to be believed..

chiral3
Founding Member

Total Posts: 5061
Joined: Mar 2004
 
Posted: 2016-05-25 22:51
205 views, 2 replies, yet several private IMs, an email, and a phone call. I guess this is stuff we're all interested in but don't want to talk about in the open. :-)

Nonius is Satoshi Nakamoto. 物の哀れ

Nonius
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Total Posts: 12736
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Posted: 2016-05-25 23:16
I'm with ya Chiral. Btw, can someone tell me this. Who is Bill Gates fucking these days? Lemme know

Chiral is Tyler Durden

chiral3
Founding Member

Total Posts: 5061
Joined: Mar 2004
 
Posted: 2016-05-25 23:49
Gates is doing philanthropy to make up for all the fucking.

Nonius is Satoshi Nakamoto. 物の哀れ

Nonius
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Posted: 2016-05-26 07:40
Big Smile

Chiral is Tyler Durden

il_vitorio


Total Posts: 103
Joined: Aug 2014
 
Posted: 2016-05-26 13:52
A little article

and this is what they are "doing". From what I heard he is just investing money in the foundation.

One of my most productive days was throwing away 1000 lines of code.

chiral3
Founding Member

Total Posts: 5061
Joined: Mar 2004
 
Posted: 2016-05-26 14:09
C'mon il vitorio, I have access to public data too. I have a BBG, can code a web scraper. Tell me something I can only find in meatspace. :-)

Nonius is Satoshi Nakamoto. 物の哀れ

gammaphreak01


Total Posts: 14
Joined: May 2007
 
Posted: 2016-05-26 22:19
Not seeing much by way of response. It would be interesting to understand their capital structure and credit model, ie do their shareholders have the capacity to underwrite trading losses and breakdown in correlations or are their counterparts ultimately taking those risks? Not clear from what I have seen on their site

Nonius
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Posted: 2016-05-26 22:44
I don't know about XTX but in the HFT credit files I've seen, the "shareholders" do not underwrite any losses whatsoever and the PBs typically assesses the credit risks as relatively low compared with a lot of other counterpart categories. Part of that is due to the HFT nature of it, the lower overnight exposure etc. There are some op risks in the (sponsored) access stuff. Then again been a while since I looked at this stuff maybe things have changed.

Chiral is Tyler Durden

katastrofa


Total Posts: 458
Joined: Jul 2008
 
Posted: 2016-05-27 00:25
I do cash equity HFT. We close almost all our positions at the end of day.

Adeka


Total Posts: 5
Joined: Oct 2012
 
Posted: 2016-06-22 09:53
XTX also states "Our average risk holding time in G10 is 11 mins and in EM is 23 mins" on their products page. Also it was claimed previously at GSA by Alex that instantaneous hedging is not market-making Does it mean that they really do not hedge much of their exposure immediately or not at all?

katastrofa


Total Posts: 458
Joined: Jul 2008
 
Posted: 2016-07-04 23:55
They probably want to capture enough flow on multiple venues to ensure they never acquire a too big position, as well as becoming less aggressive on one side if they become too long / too short.

"Instantaneous" hedging would mean crossing the spread to close the acquired position, which defeats the point of being a market-maker (spread capture).

Jurassic


Total Posts: 152
Joined: Mar 2018
 
Posted: 2018-05-12 11:47
@HitmanH

Whats better about a prop structure?
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