Chicago Prop Trading List

Hi all

Can somebody help me out with a list of what would be considered "top tier" prop shops in Chicago for options trading? I'm currently a sophomore at a target and would definitely like to go into equity options trading next year. A handful come to our career fair, but I didn't get the chance to talk to them this year.

I'm aware of many of the ones discussed from lurking the forum such as DRW, Transmarket, Optiver, Citadel, Peak6, Gelber Group, Belvedere, CTC, Wolverine, Akuna, Spot, Group One, etc. but aren't super familiar with what all of them trade. I'm also an econ major with a math minor, so I'm honestly probably not smart enough for one of those HFT firms with a super strong emphasis on math (like Jane Street?).

Does anybody have a list of what's most "prestigious" or shops are or the ones that are desirable within the equity options space? Not necessarily a ranking, I'd just like some insight into which shops are legit (i.e. not put up your own capital, good training, high base salary, etc.).

 
Best Response

Jump, HRT (and it's affiliate Rigel Cove), Tower (and it's affiliates Latour, Spire-X, Spire Europe), JSC, Optiver, DRW, Teza, Headlands, Five Rings, Transmarket, Wolverine, CTC, Belvedere, Spot, Peak6, Volant, XR, Sun, Allston, IMC, Flow, Virtu, Tradebot (used to be big, not sure about anymore), Radix, KCG, SIG. As I was typing this I realized you said Chicago options MM, most of these are in CHI but a few of the HFTs like HRT and Tower and also JSC are NYC.

Citadel is a HF, Two Sigma is AM.

They primarily recruit STEM majors, just a heads up. Every single candidate I've met at the interviews has been either a math or CS major. That's not to say you need to be a math major to pass the interview, it's just probably easier to get one that way. If you can't/don't want to, I'd recommend taking: probability, stochastics, and combinatorics.

 

Spot on with the list. Although I don't agree that they recruit from just STEM majors. I am starting FT at one of the top prop shops mentioned in your post and I don't have any STEM training. Finance and Econ are also semi-targeted majors. Your agility and previous work experiences are also major factors. Passion is also critical; some of these firms want people that want to do nothing else but trading.

 

i often wonder why people refer to prop trading as "dead" or "dying". If you are a good trader, it almost doesn't matter where you are...you will be able to make money trading...even if you only have enough $$ to trade 2 futures contracts. The advantage of trading at one of these prop firms is just the ability to trade more capital than you might have personally. If you are a good trader, and the prop firm didn't exist..or wouldn't hire you..then you would just trade your own account from home in your boxer shorts. The only reason a good trader would want to join a firm (prop of hedge fund) is so they can trade a larger slug of capital, and maybe get a reduction in their transaction costs.

The argument of offsetting the risk to the prop firm / hedge fund (heads i win, tails you lose) is also attractive..but if you are a good trader (consistently profitable) then this becomes less of an issue.

The prop firms exist only because not all talent has the capital to trade on their own...and the larger firm / group of capital can negotiate lower transaction costs and some infrastructure costs are cheaper when buying in bulk. With the advent of high-speed internet based screen trading thru a firm like IB, this is almost irrelevant now anyway. If you want to trade, and are willing to put in the work...there are still plenty of opportunities in the markets.

I am a proprietary Govt Bond Trader...i post my comments on the mkt intraday at twitter...and longer articles on my blog. I've accumulated a lot of educational info in these blogs..so i highly recommend checking them out http://govttrader.blogspot.com
 

my point is that there is no need to pidgeon hole yourself to one product or strategy....if we are talking CDO trading...or nth to default CDX baskets...then yeah...its not like it used to be...but come one...learn the primary markets...treasuries, FX, equity indices, Crude Oil, Gold & Silver...these are the markets where your average trader can become a great trader and learn about the world. Before deciding to focus on a narrow niche of the finance world, learn the fundamentals...learn to trade the fundamentals...and then get creative. Trying to get creative when you can't trade the fundamentals is not going to help the common man.

I am a proprietary Govt Bond Trader...i post my comments on the mkt intraday at twitter...and longer articles on my blog. I've accumulated a lot of educational info in these blogs..so i highly recommend checking them out http://govttrader.blogspot.com
 
protectedclass:

doubt any of the big props are hiring. you might need to go back to get your masters to have a shot during the october-jan recruiting cycle if you want to be at a legit(50K+ salary) shop.

Unfortunately that's also what I was thinking. I am in a position to take a reasonsably well-paying sales job at a logistics company, and will most likely save to do just exactly that, as well as really try to generate some decent PnL for my personal account.

"When you stop striving for perfection, you might as well be dead."
 
Ilk1986:

C) The man who hired me originally is now building up another trading group under his supervision, but the problem is that said group isn't showing profits yet to the point of being able to hire junior staff. So I can't get rehired by that same man.

Pretty far outside of the box suggestion here BUT - Maybe work out an arrangement with the guy who originally hired you and help him build his new business.

Example - You will work for X months for free in exchange for a cool sounding title, $x bonus once profitable, and prorated back-pay added on to normal base salary once profitable until paid back what you would've made.

If it doesn't work out, at least you've got a good title on your resume, show that you're not afraid to take risks but are still loyal, and have a good story to tell.

Then again, I have no idea how long you are comfortable going without being paid, or whether it's even realistic for the strategy to become profitable within six months. Just my $.02.

 
MarketParticipant:
Ilk1986:

C) The man who hired me originally is now building up another trading group under his supervision, but the problem is that said group isn't showing profits yet to the point of being able to hire junior staff. So I can't get rehired by that same man.

Pretty far outside of the box suggestion here BUT - Maybe work out an arrangement with the guy who originally hired you and help him build his new business.

Example - You will work for X months for free in exchange for a cool sounding title, $x bonus once profitable, and prorated back-pay added on to normal base salary once profitable until paid back what you would've made.

If it doesn't work out, at least you've got a good title on your resume, show that you're not afraid to take risks but are still loyal, and have a good story to tell.

Then again, I have no idea how long you are comfortable going without being paid, or whether it's even realistic for the strategy to become profitable within six months. Just my $.02.

Agreed, I would offer to work for free in exchange for a good deal once the profits start coming in (make sure you have it in writing).

 

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