Getting Started with trading software as an options market maker

Click here to contact us if you need specific information or help on getting started. Below are a few steps which will help you get there.

Step 1. MJT can provide many different programs to different types of stock options traders trading software, so the first step is to contact MJT and we can help you figure out what your trading needs are.  You can do this by filling out the contact information page and submitting to us.

We can help the following options market maker types:

NYSE / AMEX Market Makers (remote and floor based)

NYSE / ARCA Market Makers (remote and floor based)

CBOE Market Makers (remote and floor based)

Individuals who are going to become members of NYSE/AMEX or currently are in the membership approval process.

Customers using portfolio margining (risk based haircut treatment) and trading at retail firms.

Broker Dealers (upstairs traders, hedge funds)

Different Packaging of functionality is available to different user types.  Since not all traders have the same needs, they should not be forced to pay for functionality that is not needed.  Most trading systems have only one platform setup and billing methodology, and we are different in that we can provide a range of packaging from simple risk management tools to the all functionality required to make markets.

Trader Type 1

Not a member of an exchange, only sends orders, and simply needs real time position greeks and risk analysis.  This could be either a retail customer using portfolio margining, or a an upstairs Broker Dealer trader. 

Trader Type 2

Individual Market Maker.  This user type needs all functionality related to quoting and trading many stocks.

Trader Type 3

Remote Market Maker.  This user type needs all functionality related to quoting and trading many stocks.  This user type has special needs related to remote access and remote quoting.

Trader Type 4

Specialist firms (or market making firms with more than one member). 

Step 2. Get in touch with the NYSE exchange to apply for membership (if your trading type requires it):

NYSE Membership Information and Application Forms

You should allow at least 4 - 6 months for the approval process for NYSE applications.

Step 3. Establish relationship with clearing firm, if not already setup.  If you are currently clearing through either Merrill Lynch or Goldman Sachs, setup will be seamless since we have connections to both clearing firms.  

Goldman Sachs Clearing

Merrill Lynch Clearing

Step 4. Once you know what type of trading entity you are and you know your associated clearing firm, next step is to figure out hardware needs, and equipment location.  There are two options for equipment location: you can either "co-locate" your hardware or choose to have the hardware reside next to you.  MJT can support either configuration and can help in making this decision, since there are positives and negatives to each configuration.  

Step 5. Establish connectivity to the new exchange location based on hardware configuration choice.  MJT has its own cloud for you to use as your network or you can choose to locate your equipment locally on the exchange floor.  If you are not going to use MJT's cloud for connectivity, make sure to allow as much time for connectivity as with the membership approval process.  Setting up network connections has many dependencies and requires many pieces to come together in order to be setup.  Doing this alone is not suggested unless you are a network expert.  Please contact MJT for any questions you may have regarding connectivity.