DRW Trading Group
| Company type | Private |
|---|---|
| Industry | Proprietary trading, Financial services |
| Founded | 1992 |
| Founder | Don Wilson |
| Headquarters | Chicago , United States |
Area served | Global |
| Products | Trading in fixed income, options, derivatives, energy, agricultural commodities, cryptocurrency |
DRW Holdings, LLC, widely recognized as DRW, is a proprietary trading enterprise based in Chicago. Established in 1992 by Don Wilson, who was an options trader at the Chicago Mercantile Exchange, the company engages in trading a broad spectrum of financial products such as fixed income, options, derivatives, as well as energy, agricultural commodities, and cryptocurrency. DRW maintains a global presence with offices located in Amsterdam, Austin, Greenwich, Tel Aviv, Chicago, New York City, Houston, London, Montreal, and Singapore. It is recognized as one of the leading trading firms internationally.
History
Don Wilson founded DRW in 1992, naming it after his own initials. The firm employs various trading methodologies, including high-frequency trading. DRW gained notable attention through Michael Lewis's 2014 publication Flash Boys, which explores the rivalry among trading firms striving to build infrastructure that enables trading speeds within sub-nanosecond ranges (latency arbitrage).
In 2013, the Commodity Futures Trading Commission initiated legal action against Wilson concerning alleged market manipulation involving interest-rate swap futures during 2010–2011; however, this lawsuit was dismissed in 2018 due to insufficient evidence.
Growth via strategic acquisitions has played a key role in DRW’s expansion. During Lehman Brothers' collapse in 2008, DRW acquired portfolios related to foreign exchange, interest-rate derivatives, and agricultural derivatives. The firm's expansion continued with the purchase of proprietary trading firm Chopper Trading in 2015 and high-frequency trading firm RGM Advisors in 2017. Later that same year, DRW established an energy trading division in Houston by integrating Martin Energy Trading.
DRW has made substantial investments in blockchain and cryptocurrency industries. In 2018, it supported Eris Exchange, a platform facilitating cryptocurrency trading including Bitcoin, Ethereum, and Bitcoin Cash. Furthermore, Digital Asset Holdings—a company focused on blockchain database technology—originated from a Bitcoin trading initiative within DRW.