Jump Trading LLC is a

proprietary trading Proprietary trading (also known as prop trading) occurs when a trader trades stocks, bonds, currencies, commodities, their derivatives, or other financial instruments with the firm's own money (instead of using depositors' money) in order to mak ...

firm with a focus on algorithmic and

high-frequency trading High-frequency trading (HFT) is a type of algorithmic financial trading characterized by high speeds, high turnover rates, and high order-to-trade ratios that leverages high-frequency financial data and electronic trading tools. While there is no ...

strategies. The firm has over 700 employees in Chicago, New York, Austin, London, Tel Aviv, Singapore, Shanghai, Bristol, Gurgaon, Gandhinagar, Sydney, Amsterdam, Hong Kong, and Paris and is active in

futures Futures may mean: Finance *Futures contract, a tradable financial derivatives contract *Futures exchange, a financial market where futures contracts are traded * ''Futures'' (magazine), an American finance magazine Music * ''Futures'' (album), a ...

, options,

cryptocurrency A cryptocurrency, crypto-currency, or crypto is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it. It ...

, and

equities In finance, stock (also capital stock) consists of all the shares by which ownership of a corporation or company is divided.Longman Business English Dictionary: "stock - ''especially AmE'' one of the shares into which ownership of a company ...

markets worldwide. The company is a member of the Principal Traders Group, an advisory group formed by the

Futures Industry Association The Futures Industry Association (FIA) is a trade association in the United States composed of futures commission merchants. A futures commission merchant is analogous to a broker; they are entities that accept orders and payment for commodity ...

(FIA) to represent principal traders (i.e. independent

firms that trade only on their own accounts). Jump has been privately funded throughout its existence.

History

Jump Trading was founded in 1999 by two former pit traders, Paul Gurinas and Bill Disomma, who met in the Deutsche Mark pit at the

Chicago Mercantile Exchange The Chicago Mercantile Exchange (CME) (often called "the Chicago Merc", or "the Merc") is a global derivatives marketplace based in Chicago and located at 20 S. Wacker Drive. The CME was founded in 1898 as the Chicago Butter and Egg Board, a ...

(CME). While the firm got its start in the open outcry pits, Jump Trading does most of its trading electronically. The company has made substantial investments in

and infrastructure, including a Belgian microwave tower once owned by NATO, purchased in 2013 by a U.K. affiliate. Following the 2010 flash crash, Disomma, Gurinas, and COO Matt Schrecengost met with CFTC chairman

Gary Gensler Gary Gensler (born October 18, 1957) is an American government official and former investment banker serving as the chair of the U.S. Securities and Exchange Commission. Gensler previously led the Biden–Harris transition's Federal Reserve, B ...

to discuss the definition of spoofing as a disruptive trade practice as well as transparency and access to SEFs. This meeting contributed to regulatory efforts to implement new market rules stemming from the Dodd–Frank Act. In April 2014, Jump was one of six high-speed trading firms subpoenaed by New York Attorney General Eric Schneiderman regarding their trading strategies, as well as the special arrangements they may have with exchanges and

dark pool In finance, a dark pool (also black pool) is a private forum (alternative trading system or ATS) for trading securities, derivatives, and other financial instruments.Securities and Exchange Commission The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against mark ...

(SEC) due to a malfunction in one of its trading algorithms leading to the accidental accumulation of a short position worth hundreds of millions of dollars. Gurinas and DiSomma also founded a venture capital firm, Jump Capital, in June 2012. By January 2016, the firm had invested in 30 companies. Jump Capital also invested $5 million in The Small Exchange in May 2019, a start-up retail trading futures exchange. Jump Trading is a registered

broker-dealer In financial services, a broker-dealer is a natural person, company or other organization that engages in the business of trading securities for its own account or on behalf of its customers. Broker-dealers are at the heart of the securities and ...

and member of multiple exchanges including the

CME Group CME Group Inc. (Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange, The Commodity Exchange) is an American global markets company. It is the world's largest financial derivatives exchange, and trades in asset clas ...

and the

New York Stock Exchange The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed ...

. They are also members of most European exchanges including

Eurex Eurex Exchange is an international exchange which primarily offers trading in European based derivatives. It is the largest European futures and options market. The products traded on this exchange vary from German and Swiss debt instruments to E ...

and the

London Stock Exchange London Stock Exchange (LSE) is a stock exchange in the City of London, England, United Kingdom. , the total market value of all companies trading on LSE was £3.9 trillion. Its current premises are situated in Paternoster Square close to St Pa ...

. In September 2021, Jump announced their

business through a new brand named Jump Crypto

Charitable work

In 2013, Jump Trading donated $25 million to fund the creation of the Jump Trading Simulation and Education Center. In February 2014, Jump Trading donated an additional $25 million to fund a joint medical research project between a Peoria simulation & education center and the University of Illinois at Urbana-Champaign's College of Engineering. In a statement from the institutions, the donation will support doctors and engineers working together on clinical simulation, education and health care issues striving to "improve the quality of care and outcomes for patients" and "reduce health care costs".

References

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Financial services companies based in Illinois Financial services companies established in 1999 American companies established in 1999 Companies based in Chicago 1999 establishments in Illinois