IMC ANNUALREPORT 2020 - Flipbook - Page 6
01 MANAGEMENT BOARD REPORT
IMC ANNUAL REPORT 2020
MANAGEMENT
BOARD REPORT
2020 WAS A year like no other. As
we write this Management Board
report, we continue to witness
the impact of Covid-19, the global
health pandemic, on our lives, our
communities, and economies.
In IMC’s more than 30-year history,
markets have seen several sudden
and tumultuous shocks. Even by
those measures, 2020 was a year
apart. No one could have anticipated
that our world would be so disrupted,
and that much of our work would
have to be done away from our
regular workplaces, or at kitchen
tables, in spare rooms, or in attics.
Not only were markets turbulent,
with extreme volatility and volumes,
but IMC faced the immediate
and urgent logistical challenge of
operating under severe health and
safety restrictions.
Market makers such as IMC
deliver real and measurable benefits
in facilitating the transfer of risk
for investors at the lowest cost.
In constantly providing liquidity at
competitive prices whatever the
market circumstances, market
makers contribute to the stability
and efficiency of fair, transparent
and reliable markets. That purpose
and value, in enabling market
participants to trade in and out
of positions at a time of their
choosing at low transaction costs,
is acknowledged across the global
regulatory and political landscape.
6
Among IMC’s core values is ‘being
here to stay’. Our governance and
infrastructure, risk management
capabilities and discipline, and
talent and culture equip us to
move quickly and decisively in even
the most extreme circumstances,
and our ability to provide liquidity
without disruption throughout this
challenging period confirmed the
strength of our business model.
Importantly, we took measures
early and proactively. When the
seriousness of Covid-19 became clear
to us early in the year in Asia, our
immediate priorities were to protect
our people and ensure business
continuity. In our main offices, in
Amsterdam, Chicago, and Sydney,
our teams rose to the challenge.
Within a matter of days we had
migrated the bulk of our operations
to home or offsite centers.
That logistical and technological
challenge was accomplished
smoothly. Our trading systems
and software functioned well.
That is a huge credit to everyone
at IMC, not least our dedicated
technical and support staff.
Throughout 2020 our people
stayed safe and healthy, and we
are relieved and thankful that the
few Covid-19 cases reported at
IMC were minor. We believe that
outcome was achieved at least
in part by our swift response in
instigating stringent working
controls and measures. We continue
to closely monitor developments
around the pandemic, and to follow
the advice of governments and the
relevant public health agencies,
adjusting our plans as necessary.
Despite the challenges of the
year, IMC continued to grow. Our
record trading results in 2020 not
only reflected heightened market
volatility but, more importantly,
high trading volumes, which
is typically the single biggest
contributor to the profitability
of our business in any given year.
Also, the decisive steps we have
taken and the investment we have
made as a firm over multiple years
in talent, technology and trading
strategies, and in risk management
and compliance, were fundamental
to our successful performance.
Results, across all regions,
support our confidence in a strategy
to allocate resources where they
are most effective. We continue
to expand and to further improve
our market making capabilities,
adding new strategies, products,
and geographies. This led us also
to further strengthen our Risk
Management infrastructure and
capabilities.
We are scaling up our institutional
trading activities and direct
counterparty network across the
globe to become a liquidity provider
of choice, offering execution
options to buy-side investors. In
maintaining a clear focus on our
strategic growth plan, we leveraged
our technology stack to generate
revenue and worked across regions
to drive productivity.
“Among IMC’s core
values is ‘being here to
stay’. Our governance
and infrastructure, risk
management capabilities
and discipline, and talent
and culture equip us
to move quickly and
decisively.”
7