Inside Jump Trading: The little-known crypto kingmaker working with the world's most prominent cryptocurrency firms, and trading millions

One of the most active firms in the crypto trading world — working with exchanges, OTC desks, and crypto projects — is a Chicago HFT you've probably never heard of: Jump Trading.

The firm is among the numerous active Wall Street firms in the fledgling digital currency world, alongside the likes of DRW and Susquehanna International Group. Chicago-based Jump Trading has been one of the least public about its efforts in crypto.

That's despite its strong presence and reputation in the ecosystem. The firm has been among the largest traders on derivatives exchange BitMEX and has recently begun market making for cryptocurrency projects — two facts that haven't been previously reported. Sources tell The Block the firm is also making a big push into Asia.

The firm has been involved in the market since at least the heyday of 2017, acting as a counterparty to institutions looking to broker large over-the-counter crypto trades. It also pioneered the electrification of the market, rolling out in 2018 what might be one of the first graphical user interfaces for traders to interact with the firm. This move was followed by cross-town rival DRW, which launched its electronic platform, Marea, this past May. B2C2, a European market making firm, is another electronic trading pioneer in the cryptocurrency market. 

The firm shares resources with affiliated venture capital firm Jump Capital. Jump Capital has invested in a number of cryptocurrency companies, including BitGo, Digital Assets Data, and Curv. 

Global business

Jump Trading's website — which basically just shows a logo and office headquarters — provides zero insight into its business, including its crypto activity. The firm has hundreds of employees spanning the globe, trading "major asset classes on multitudes of electronic exchanges around the world," as per one job ad.

As for crypto, previous reporting from Bloomberg's Matt Leising confirms that Robinhood Crypto, the digital asset unit of stockbroker Robinhood, routes its crypto orders to the trading firm, which it matches in its own systems. In equities, trading firms pay retail brokers for their flow, which Jump can handle with less risk than the large traders on Wall Street. Indeed, the firm is known as the go-to destination for folks in Asia looking to trade in size, according to one source. 

"If you want to trade 100 bitcoin you go to Jump," the person said. "Under 100, you go to Alameda," referring to another trading shop. One trader said the firm has been making a greater push into Asia as it has started offering market-making services to cryptocurrency projects. 

"At a Singapore conference, they had a full room and booth. It was the biggest OTC presence at the conference — made Cumberland and the rest seem like shit," the person said. 

Crypto market-making firms are controversial in the space, as folks often attribute them to faking volumes and pumping coin prices at the expense of retail traders. But market-making services play a legitimate role, according to GSR founder Rich Rosenblum. 

"Successful market-making should reduce volatility," Rosenblum said. "Stability and liquidity are important parameters for a token to be useful within an app or other ecosystem."

Elsewhere, Jump is trading on Asian marketplaces BitMEX, a derivatives exchange, as well as Bitfinex, according to several sources. Jump is co-located with Bitfinex, meaning it is more closely linked up with its matching engine.

But crypto exchanges might be letting the wolf into the chicken coup, one former crypto exchange executive said. 

"Crypto exchanges love them, but what they don't know is that Jump is the biggest threat to their existences," the person said. "Just as dark pools did to exchanges, the crappiest flow will end up on exchanges and the good flow will become intermediated. 

Crypto-enthusiast CEO

Its activity in crypto may come as no surprise for those who know the firm's founder, Bill DiSomma. DiSomma, who goes by Billy, is highly regarded in industry circles. 

"He still lives in the house he moved into with his wife," said one source. "He is just one of those guys." 

DiSomma, 52, purchased his Chicago home for $645,000 in 1999, according to Bloomberg. 

Despite DiSomma's congenial personality, he is deeply private. The former CME pit trader founded the predecessor to Jump Trading, Akamai Trading, in 1999 alongside Paul Gurinas, according to Crain's Chicago. The 2014 report noted the firm has kept a low profile to avoid publicity after the release of Michael Lewis' "Flash Boys," which derided certain HFT strategies as akin to scalping. 

Interestingly, DiSomma is heavily involved in the crypto business, spending the "lion's share of his time" on the business, according to one source. 

"They strike me as the most invested HFT from the equity world," the source said. 

A spokeswoman declined to make DiSomma available for an interview. Overall, sources described the crypto team as strong with one source pointing out Dave Olsen, president and CRO at Jump, as a "super sharp guy." In October, Michael Cahill joined the firm's digital asset sales team from Cboe Global Markets, according to his LinkedIn profile. Rob Sagurton runs the sales efforts of the business, according to a source. In total, another source estimated that around 20 people at Jump are involved in crypto, although many of those folks likely wear several hats.

The company is known for being buttoned-up. A former employee at Circle said the company at one point cut trading ties with the Boston-based firm for "being too Skype" and not trading electronically. Circle, similarly to Jump and others, has been moving towards electrification.