Eclipse TRADING

Introduction

A proprietary trading firm is an important part of the financial markets, acting as a liquidity provider and executing trades for institutions that use more complex trading strategies. One such proprietary trader is Eclipse Trading, an Equities Derivatives/Quant Fund/Proprietary Trading Firm founded in 2007 that emphasises a technology-based approach to trading.

Eclipse Trading has a long-standing reputation for providing market-neutral strategies using proprietary technology across multiple global markets. Unlike a retail brokerage firm, which may act as an agent for its clients and trade only on their behalf, Eclipse Trading trades for itself using algorithmic and arbitrage strategies, allowing it to access all asset classes.

With offices in Hong Kong, Sydney, Shanghai and Chicago, Eclipse can maximise its global presence to maintain a competitive advantage in Equities Derivatives and related products.

In this article, we will cover the history of Eclipse Trading, its key features, regulatory status and its trading conditions.

History of Eclipse Trading

Eclipse Trading was founded in 2007 as a proprietary trading firm focused on derivatives and equity arbitrage. Although Tony Stephens is credited with founding the firm, its roots are deeply embedded in market-neutral and quantitative trading philosophies. The firm has its world headquarters in Wanchai, Hong Kong, and has grown steadily since its establishment. Eclipse Trading currently employs over 100 people worldwide and has opened offices in Sydney, Shanghai, and Chicago during their time as a proprietary trader.

From its inception, Eclipse Trading has consistently grown its business across global markets. Currently, Eclipse Trading is led by CEO Fred Gao, and its growth remains disciplined and consistent. Eclipse Trading's focus is on continuous innovation and collaboration among its traders, Quantitative Analysts, and IT Staff to develop its business in a Technology-Driven Environment.

Key Features of Eclipse: Introduction

Eclipse Trading, as a proprietary trading firm, does not trade for Clients; it trades for itself. As such, when trading, Eclipse Trading employs a market-neutral strategy that reduces the risk taken by being Directional and maximises inefficiencies in pricing across equities, derivatives and related instruments.

Eclipse Trading specialises in trading equities, derivatives, arbitrage, delta-one stock exchange-traded funds (ETFs), commodities, and cryptocurrencies. All trading strategies utilised by Eclipse Trading are heavily quantitative and algorithmic; however, they limit the risk associated with directionally positioned retrades by using complex data analysis to identify and exploit market opportunities.

Continuous improvements to the platform, as directed by the Eclipse Trading team of traders, quantitative analysts, and IT staff, support the growing need for high-volume, low-latency trade execution in volatile markets.

Regulatory Licensing and Compliance

The Regulatory Compliance and Licensing Rules governing a Proprietary Trading Firm differ from those governing a Retail Broker or a Financial Intermediary Firm. Eclipse Trading only trades for itself and, as such, typically has no Retail Clientele; therefore, in most cases, it does not need to apply for or obtain Broker-Dealer Licensing in the various jurisdictions in which it operates.

Eclipse Trading places focus on internal Risk Management and Compliance rather than on the Regulatory Compliance and Licensing requirements for providing Brokerage Services to Clients.

Trading Conditions and Platform Technology

The Trading Conditions of Eclipse Trading are distinct from those of conventional retail brokers, as they do not have publicly available accounts or disclose their typical trading conditions (such as spreads, leverage, or minimum deposits). All of Eclipse Trading's trades are placed internally by the firm using only its own capital and its own trading platform technology, allowing for the total confidentiality of the trading process and the effective execution of trades.

The Platform Technologies that Eclipse Trading utilizes are designed for speed, dependability, and scalability. Each platform was built internally by IT professionals and quantitative analysts, and supports the execution of high-volume trades at low latency with the highest level of effectiveness. Due to the proprietary nature of Eclipse's trading model, Eclipse does not offer client-facing trading platforms or mobile apps.

Fee Structure

Since Eclipse Trading operates as a proprietary trading firm rather than a retail broker, it does not charge deposit fees, withdrawal fees, commissions, or inactivity fees to external clients. All trading costs and fees are internal considerations managed within the firm’s capital structure.

There is no publicly available information on any fee structures related to client accounts, as Eclipse does not offer retail or institutional brokerage services.

User Experience and Market Reputation

Although Eclipse Trading does not provide retail services to clients, employees have given a glimpse of the company's workplace through reviews posted on the company's website. In employee reviews, employees note that Eclipse Trading has a flat organizational structure, which encourages open lines of communication and collaboration across the firm. The company's diverse employee base and innovative working environment provide an excellent foundation for employees to think creatively, solve problems, and continually learn.

Traders at Eclipse enjoy being given the freedom and autonomy to manage their own trading books and associated risks very early in their careers. The company's emphasis on balancing work and family, along with its flexible work schedule, has created an enjoyable workplace for its employees. Since Eclipse operates as a proprietary trading firm, it does not have customer reviews.

Recent Developments

Eclipse Trading remains committed to being a leader in technological innovation and further developing its quantitative trading strategies for the global community as of 2024. Although Eclipse has not made any recent public announcements or significant developments, the company continues to grow steadily and maintain a strong presence in the Asia-Pacific region and other major markets.

Eclipse has established itself as a leader within the equity derivatives and_(Algorithmic) trading space. Continuing to build a proprietary trading platform in-house, combined with a strong commitment to a collaborative corporate culture, will enhance Eclipse Trading's position as an organization well-positioned for future growth and success in the changing landscape created by more widely accepted digital trading and equity derivatives.

Conclusion

Eclipse Trading is a modern proprietary trading firm that has leveraged technology, quantitative expertise, and its global reach to succeed in the equity derivatives market. Founded in 2007, the company has offices in Hong Kong and employs a market-neutral trading approach, using algorithmic and arbitrage strategies on proprietary trading platforms.

While Eclipse Trading may not offer retail brokerage services or public trading conditions to clients, the company's reputation in the proprietary trading community has been built on a strong commitment to innovation, collaboration, and continued growth. The company's example is a good model to understand how technology and expertise create the necessary synergy to successfully navigate complex global markets.