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From an ordinary options trader to a billionaire


The driv cashbackforexbrokerg force behind modern electr cashback forexic cashbackforexexness in securities, Thomas Pettyfer, once an ordinary forexrebateclub trader on the American Stock Exchange (AMEX), is now a billionaire who founded InteractiveBrokers, the nations 16th largest brokerage firm. The billionaires legacy has become a Wall Street myth: Thomas Pettyfer, the driving force behind modern electronic trading of securities, has had a profound impact on the globalization of stock forex rebate club options trading, helping to speed up trading on electronic exchanges, and helping to lay the foundation for the prevalence of algorithmic trading. In an interview with Institutional Investor magazine, Thomas Pettyfer, 63, said, "Im on Wall Street, like Alice in Wonderland, and Im particularly puzzled by the fact that in an age when computers can handle problems better, why people are still signaling and shouting at each other on the trading floor to trade. It was mind-boggling how everything was more chaotic than I expected and worlds away from what I envisioned The Hungarian immigrant tycoon who started from nothing Born in the basement of a hospital in Budapest during World War II in 1944, Toms did not have a good childhood I was not born in an era of wealth and stability Toms recalls that Hungary was a nice place to live before the war In 1965, he finished his engineering When the company bought a computer, he volunteered to learn how to operate and program it. In 1967, he got a job with a computer consulting firm that designed financial modeling software for Wall Street, and Thomas had designed a software program such as Lotus 1-2-3 before it was born. A few years later, he joined a commodities trading firm and designed a trading and analysis software that, at the same time, focused on the workings of the financial markets. In 1977, he left his job developing commodities trading software to become an options trader at AMEX. Since then, he has been unable to accept the traditional, regressive, backward-looking way of trading on Wall Street, and has stuck with the idea of dramatically increasing efficiency through automation Along these lines, the Hungarian immigrant finally founded InteractiveBrokers, a company that focuses on trading options and other derivatives In 1978, Thomas founded T.P. & CO. to expand the business and hire four traders to trade with the help of a program he designed At the same time, he kept his eyes on a larger goal; he was not simply accepting the markets, but moving forward as they should be better The new firm worked well, and in 1982 he reorganized the firm, naming it TimberHill The new firm became an effective tool for Toms to trade the business and try to target his desire to move the system into the options In 1983, TimberHill invented the worlds first tradable handheld computer that could consistently price options. In 1985, the New York Stock Exchange introduced options trading. In order to gain enough market liquidity from its competitors, the exchange granted Thomass request to use its own technology. In 1987, the Chicago Board of Trade (CBOT) was ready to discontinue its four-year old trading system, which had been in operation for four years. was ready to discontinue the S&P 500 options that had been open for four years, but still lacked liquidity This was a major opportunity in Toms life, and Toms smelled an opportunity to apply to the exchange to give him a chance to operate for a year and wanted to use those newly invented handheld computers in the trading pool to provide tighter quotes If it agreed, the exchange had nothing to lose, so why not? One year after approval, TimberHill made options trading sufficiently liquid in the marketplace that, as of today, options on the S&P 500 have become one of the most dynamic index options in the U.S. The emergence of Intrusion in 1993, the electronic market maker business continued to be operated by TimberHill, with a new online brokerage business at InteractiveBrokers Operating exclusively for institutional and individual investors, client orders are transmitted over the Internet to InteractiveBrokers for execution in a single multifunctional account, where clients can trade not only stocks, options and futures, but also ETF funds, bonds and foreign exchange at a very low cost on InteractiveBrokers platform. InteractiveBrokers is now under the control of InteractiveBrokers Group, which has $2.7 billion in capital and became the 16th largest brokerage firm in the United States in 2005 and the 17th largest futures commission merchant business in the world in 2007 InteractiveBrokers Group continues to grow significantly After the 1990s After the 1990s, Thomas continued to invest in his trading network, designing a new trading technology that could break down a large order from a public company into smaller orders and deliver them to different trading markets. He decided to invest $200,000 of his savings in a seat on the then Amex exchange to try to apply the trading model he had designed to regulate the brand new options trading of the then publicly traded companies. In the fledgling world of options, Thomas was seen as a bit of an eccentric. In 1999, Thomas proposed to the SEC to implement electronic quoting in the options market to ensure that investors could get the best possible price after being convinced that electronic trading could help After becoming convinced that electronic trading could help investors obtain the most favorable prices, regulatory authorities began to force a push to use this trading technology Toms also pressured U.S. exchanges to push for a shift from outcry markets to electronic automated aggregation markets TimberHill soon became one of the worlds largest market makers of electronically traded securities Toms perspective remains avant-garde in the U.S. financial community The market maker business can be accessed from the market Thousands of securities transactions conducted by both buyers and sellers countless companies replicate the intelligent order placement system of PCT, and direct entry and algorithmic trading systems have been adopted by large Wall Street firms such as Credit Suisse First Boston, Goldman Sachs, Merrill Lynch, Morgan Stanley and others Participating exchanges have grown from the original Amex, CME and NYSE to more than 70 today, and brokerage business units have If Bill Gates is a programmer and Warren Buffett is a trader, Thomas is more like Bill Gates in that the ratio of programmers to other employees is 5:1. He recognizes the genius of traders, but still believes that while a single program may not beat a trader, all programs together are invincible. After more than 30 years on Wall Street, the stubborn Toms has made the U.S. securities trading model much simpler. was listed on NASDAQ under the symbol IBKR, at which point Toms officially entered the public eye. Today, the company is one of the largest market makers in the world, trading electronically on more than 70 exchanges worldwide and operating in 9,400 securities.

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