JLN talked to Allen Greenberg, the COO of Matrix Executions, at the OIC Conference in Nashville in April.
Matrix Executions, an agency broker-dealer, started in February of 2018, so it just turned 5. It was formed by the old management team that ran Liquidpoint and then converted the options to Convergex after Dash took over Convergex, Greenberg said. Tony Saliba, the company’s co-founder, “started making calls, saying, ‘Hey, we want this band back together if you’re interested,'” Greenberg added. So they put together a matrix and took the old ITG derivatives broker-dealer and combined the two. ITG (since purchased by Virtu) is one of its investors.
Simplex came on as an investor in February of 2019, and the company has grown at a huge clip ever since, Greenberg said. It is up to 59 employees from an initial 12.
On the options trends driving the company’s growth, he said, “Traders are forced to do more with less. We simplify the workflow and enhance the tools they need. Our speed is in single digit microseconds, so we can handle large volumes.
On the move to 24-hour trading, he said that it was a little different from a support standpoint. “The crew must be in shifts. At certain times we might or might not be staffed. From a technology standpoint, it doesn’t change anything.”
All the company’s algorithms are customizable, and there are 150 different areas a trader can customize almost in real time, Greenberg said.
He also talked about AI and about the move to T+1 settlement – for clients that trade options tied to stocks or with a stock component, T+1 makes their life a lot easier, he said.
Regulators coming down on the OCC was “sort of a one-off thing,” he said, but it will be an ongoing issue for any regulated entity, Greenberg said. “Are the supervisory procedures designed in a way that makes sense for your business? That’s the first thing regulators look at. The second thing is are you actually doing what you’re saying you’re doing. That’s where a lot of firms or exchanges run into problems, because there’s a small gap between what you say you’re doing and what you’re actually doing. Everyone’s feet will be held to the fire to actually do that stuff.”
Questions we asked Allen Greenberg:
- What is Matrix Executions?
- What are the major options trends that have been driving your growth?
- How has the move toward 24 hour trading affected you?
- Have your customers asked for AI?
- Does the move to T+1 settlement affect your space?
- Was the regulators coming down on the OCC a one time thing or a new trend?
- What precautions are you taking for cybersecurity?