IMC ANNUALREPORT 2020 - Flipbook - Page 22
08 TRADING
IMC ANNUAL REPORT 2020
TRADING
IMC WAS AMONG the pioneers of
options market making, and among
the first to recognise the role of
technology in making markets more
efficient. We have a clear strategy
focused on our market making
capabilities, which we continue
to expand and develop where we
see opportunity to leverage our
technological and trading expertise.
Globally, we are a top-3 market
maker in listed options and have
long-standing relationships with all
leading trading venues.
Fundamental to our license to
operate is our ability to fulfil our
responsibilities as a market maker,
a contractual obligation with
many stock exchanges. The trading
landscape and market environment
of 2020 tested that obligation to
the full. Our systems performed
well, and we continued to provide
deep market liquidity. This was
especially important in the early
weeks of the outbreak when we
had limited information, visibility or
context, and which was among the
most challenging environments that
our industry has witnessed since the
2008 financial crisis.
Importantly, our trading results
for the year were strong both in
absolute and in relative terms. That
outcome reflects the influence
not only of market circumstances,
but of our significant investment
in talent and technology, and our
commitment to a clear strategic
growth path. In 2020 we saw the
results of the clear decisions we
have taken and the improvements
we have made in recent years
to focus on our core activities
and growth opportunities, while
improving latency and productivity.
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Learning is a key value at IMC, and
we continually seek to improve our
understanding of the markets and
to fine-tune strategies, investing
heavily in improving trading tools
and data. In short, we seek always
to become better at what we do.
counterparty business and have
become an important liquidity
provider to large institutions. In
APAC, we recorded strong results
from Korea, Japan and Hong Kong.
Our core growth strategies
made strong gains in the year.
Notably, in the US we deepened
our presence substantially in key
areas, supporting growth also by
leveraging teamwork and talent
from Sydney and Amsterdam.
In Europe, IMC has a balanced,
diversified revenue base that is
a strong foundation for further
growth. The energy and investment
we have put into developing our
market making capabilities in recent
years delivered successes. We
continue to be successful in trading
Brazil and India, while, at the same
time, we are increasing our direct
A fundamental pillar of our
strategic plan is clear decisionmaking to support our core
strategies. This means focusing on
projects and products where we
see the greatest opportunity. To
that end, in November 2020, we
finalised the sale of our Designated
Market Making rights at the New
York Stock Exchange to Citadel
Securities.
The progress we made in 2020 in
pursuit of clear strategic goals
supports our conviction to continue
to grow both our core trading
strategies and direct access to
regulated counterparties globally.
IMC has deep relationships with institutional buy-side investors. We
have long recognised those investors’ demands for a variety of choices
and channels through which they can execute their trades. IMC has,
over several years, built a position and reputation in Europe as a major
liquidity provider serving institutional investors, such as pension funds.
These are parties that want choice in terms of how they trade. That
choice is determined by price and execution, and by the reputation
of the individual market maker. In 2020, IMC ramped up its direct
counterparty and broker market trading in Europe, and we are actively
looking to expand our activities in all regions.
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