Latour Trading: Profits in 2018 (476Million, 1400% Return!)
Latour Trading is one of the biggest high frequency trading firms on the Wall Street. It is a private company owned by Tower Research. From its SEC filings(audit report), we analyze and estimate its trading profits. We estimate that in 2018, it generated
- an astonishing profits of $476 million dollars (estimated, see the analysis below),
- used a net capital of $34 Million,
- and thus the total return is 1400%.
Balance Sheet and Leverage Ratio
From its balance sheet at the end of 2018 December, the total assets are $1.48 billion with $63 Million equity. Thus, we estimate that the leverage ratio is approximately 23.
Profits from Futures Trading
Latour Trading made a profit of $345 million from its futures trading operations.
Overall Profits
According to the filings, Latour Trading LLC shares 17% of its overall profits with its parent company, Tower Research Capital LLC, and in 2018, Latour shares $81 million profit with Tower. Therefore, we estimate that Latour Trading's total profit in 2018 is $81M/0.17 = $476 Million dollar.s
Reference:
[1] Latour Trading's SEC filings
[2] Latour Trading's employee base salaries data
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