Thomas Peterffy

Last updated

Thomas Peterffy
Thomas Peterffy Painting Portrait By Artist Danor Shtruzman - Art Drawings (100 Richest By Forbes 2017 List).jpg
BornSeptember 1944 (age 80)
Budapest, Hungary
CitizenshipUnited States
Occupation(s)Founder and chairman of Interactive Brokers
Known forDeveloping first electronic trading platform of securities
SpouseDale McDonald (divorced)
Children3

Thomas Peterffy (born September 30, 1944) [1] is a Hungarian-born American billionaire businessman. He is the founder, chairman, and the largest shareholder of Interactive Brokers. [2] [3] Peterffy worked as an architectural draftsman after emigrating to the United States, and later became a computer programmer. In 1977, he purchased a seat on the American Stock Exchange and played a role in developing the first electronic trading platform for securities. As of March 2024, Forbes estimated his net worth at US$34.4 billion, making him the 46th richest man in the world. [4]

Contents

Early life and career

Peterffy was born in Budapest, Hungary, on September 30, 1944, in a hospital basement during a Russian air raid. [5] His father emigrated to the U.S. after the failure of the Hungarian Revolution in 1956. Peterffy left his engineering studies in Hungary and emigrated to the United States to join his father in New York in 1965. [6] [7] [8] When his father, who was living with his second wife, did not have room to accommodate his son, he gave Thomas $100 and told him to "make something of himself". [9]

When he moved to New York City, he did not speak English. Peterffy began his career in the U.S. as an architectural draftsman working on highway projects for an engineering firm. At this firm, he volunteered to program a newly purchased computer. Of his background in programming, Peterffy said, "I think the way a CEO runs his company is a reflection of his background. Business is a collection of processes, and my job is to automate those processes so that they can be done with the greatest amount of efficiency". [6] [7]

Peterffy left his career designing financial modeling software and bought a seat on the American Stock Exchange to trade equity options. During his career in finance, he has consistently pushed to replace manual processes with more efficient automated ones. He wrote code in his head during the trading day and then applied his ideas to computerized trading models after hours. Peterffy created a stir among traders by introducing handheld computers onto the trading floor in the early 1980s. [6] [7] His business related to his AMEX seat eventually developed into Interactive Brokers. [6] [7] He stepped down as CEO in 2019. [10]

In 2021, Interactive Brokers moved its European headquarters in London and outsourced its operations to two new continental centers. Thereafter, their Western European clients were served by a subsidiary in Ireland, while their Central European operations were based in Budapest. According to Peterffy, he chose Budapest because he was convinced that the Hungarian language and the “unique Hungarian logic” would result in above-average profitability; he also wanted to pay off the debt he owed to his native Hungary. The Budapest-based subsidiary, Interactive Brokers Central Europe Zrt., was established in Hungary and became a member of the Budapest Stock Exchange (BSE) upon its incorporation. [11] [12]

Peterffy, alongside Mark Penn, Victor Ganzi, Josh Harris, and James Tisch, contributed to a $50 million investment fund in The Messenger , a news website that launched in May 2023. [13] [14]

Regulatory influence and political views

In 1999, Peterffy was influential in persuading the Securities and Exchange Commission (SEC) that U.S. options markets could be linked electronically, which would ensure that investors receive the best possible options prices. [15] He has also testified before the United States Senate Banking Subcommittee on Securities, Insurance, and Investment about adding banking regulations. [6]

During the 2012 United States presidential campaign, Peterffy created political ads supporting the Republican Party. [16] Peterffy bought millions of dollars of air time on networks such as CNN, CNBC, and Bloomberg. The ads consisted of a minute-long spot narrated by Peterffy, warning against creeping socialism in the United States. The ads were out of the ordinary, because Peterffy was not a candidate and did not buy the ads through a 527 group, but instead paid for them directly. [17]

In the spot, Peterffy said, "America's wealth comes from the efforts of people striving for success. Take away their incentive with badmouthing success and you take away the wealth that helps us take care of the needy. Yes, in socialism the rich will be poorer, but the poor will also be poorer. People will lose interest in really working hard and creating jobs." [18]

Peterffy's ad received mixed responses. Joshua Green, writing for Bloomberg Businessweek , said "The ad, while slightly ridiculous, is deeply sincere and also quite affecting." Green also asked Peterffy whether the comparison between the United States and Hungary made in the ad was a fair one: "[Peterffy] couldn't really think that the U.S. was turning into socialist Hungary, could he? The government isn't suppressing speech and throwing political opponents in jail. No, he conceded, it wasn't. But it sure feels like that's the path we're on." [19] Politico said that it could have been influential in Ohio due to its large Hungarian American population. [20]

Voter registration records in Connecticut show that Peterffy has been registered as an independent voter. [17] He donated over $60,000 to the Republican National Committee in 2011 and $100,000 to a pro-Donald Trump political group during the 2016 United States presidential election. [21] [22]

Views on Donald Trump and the Republican Party

Discussing the 2016 election in 2021, he said "I am actually not a Trump fan at all. I hope he won't run again." [23] Peterffy also then said that the Republican Party is "completely adrift". [23] Peterffy says he did not vote for Trump in the 2016 Republican Party presidential primaries, but supported Trump's bid for the presidency after Trump became the Republican nominee due to Trump's opposition to socialism and collectivism. Peterffy lives near Mar-a-Lago, Trump's Florida estate, and is a member of the Mar-a-Lago Club. [23]

Peterffy contributed $250,000 to Donald Trump's 2020 presidential campaign. [24]

As of late 2023, Peterffy like other prominent and wealthy people in finance, has distanced himself from Trump saying in December 2023 that, “the street still hopes for somebody else", and expressed hope for a brokered convention. [25] Peterffy said that he will not donate to support Trump's campaign. [26]

In November of 2022 Peterffy said that Trump, "can't get elected" and that, even if as a citizen he would vote for him as the GOP nominee, that he, "will do whatever I can to make sure he is not." [27]

In August 2024, John and Amy Pheland hosted a private fundraising dinner for Donald Trump at their $38 million home in Aspen, Colorado, and the guests included Steve Wynn, Thomas Peterffy, Greg Abbott, Byron Donalds, Lauren Boebert and Cory Gardner. [28]

Interactive Brokers

Interactive Brokers Group, Inc. (IB) is an online discount brokerage firm in the United States. The company traces its origin to 1977 when Peterffy bought a seat on the American Stock Exchange as an individual market maker and formed T.P. & Co. the following year. IB has many subsidiaries operating on most major stock, futures, bonds, forex, and options exchanges worldwide. The company commenced a public offering on 4 May 2007 under the ticker symbol Nasdaq :  IBKR on the Nasdaq exchange. [29] On October 5, 2018, Interactive Brokers moved its listing to IEX, becoming the exchange's founding issuer. [30] Barron's Magazine stated in 2009 that Interactive Brokers maintains a position as "the least expensive trading venue for investors", [31] and continued to be ranked by Barron's as the lowest cost broker as well as the Best Online Broker in 2019. [32]

OneChicago

OneChicago was an all-electronic exchange owned jointly by IB Exchange Group (IB), Chicago Board Options Exchange (CBOE), and CME Group. It was a privately held company that was regulated by both the Securities and Exchange Commission and the Commodity Futures Trading Commission. The OneChicago corporate headquarters was located in the Chicago Board of Trade Building in Chicago's financial district. OneChicago offered approximately 2,272 single-stock futures (SSF) products [33] with names such as IBM, Apple and Google. All trading was cleared through Options Clearing Corporation (OCC). At the time, OneChicago operated the only U.S. based securities futures marketplace.

Net worth

Peterffy owns 75% of Interactive Brokers [34] with his net worth being estimated at $34.4 billion as of March 2024. [4] He is the 46th richest man and the richest Hungarian in the world. [4] [11] [12]

Personal life

He was married to Dale McDonald, and they had three children together, two daughters and a son, William Peterffy. [6] [35] They later divorced. [6] [35]

He is an avid equestrian. [6] He lives in Palm Beach, Florida. [6] In 2020, he sold his 80-acre Connecticut estate for $21 million after originally listing it for $65M in 2015. [36] [37]

Award

Related Research Articles

<span class="mw-page-title-main">NYSE American</span> Stock exchange in New York City

NYSE American, formerly known as the American Stock Exchange (AMEX), and more recently as NYSE MKT, is an American stock exchange situated in New York City. AMEX was previously a mutual organization, owned by its members. Until 1953, it was known as the New York Curb Exchange.

<span class="mw-page-title-main">Larry Ellison</span> American businessman and entrepreneur (born 1944)

Lawrence Joseph Ellison is an American businessman and entrepreneur who co-founded software company Oracle Corporation. He was Oracle's chief executive officer from 1977 to 2014 and is now its chief technology officer and executive chairman.

<span class="mw-page-title-main">Carl Icahn</span> American businessman and financier (born 1936)

Carl Celian Icahn is an American businessman and investor. He is the founder and controlling shareholder of Icahn Enterprises, a public company and diversified conglomerate holding company based in Sunny Isles Beach, Florida. Icahn's business model is to take large stakes in companies that he believes will appreciate from changes to corporate policy. Subsequently, Icahn then pressures management to make the changes that he believes will benefit shareholders, and him. Widely regarded as one of the most successful hedge fund managers of all time and one of the greatest investors on Wall Street, he was one of the first activist shareholders and is credited with making that investment strategy mainstream for hedge funds.

<span class="mw-page-title-main">Mark Cuban</span> American businessman (born 1958)

Mark Cuban is an American businessman and television personality. He is the former principal owner and current minority owner of the Dallas Mavericks of the National Basketball Association (NBA), co-owner of 2929 Entertainment, and was one of the main "sharks" on the ABC reality television series Shark Tank.

<span class="mw-page-title-main">Peter Thiel</span> American entrepreneur and venture capitalist (born 1967)

Peter Andreas Thiel is an American entrepreneur, venture capitalist, and political activist. A co-founder of PayPal, Palantir Technologies, and Founders Fund, he was the first outside investor in Facebook. As of July 2024, Thiel had an estimated net worth of US$11.2 billion and was ranked 212th on the Bloomberg Billionaires Index.

<span class="mw-page-title-main">Jamie Dimon</span> American banker and businessman (born 1956)

James Dimon is an American businessman who has been the chairman and chief executive officer (CEO) of JPMorgan Chase since 2006.

<span class="mw-page-title-main">Stephen A. Schwarzman</span> American businessman and investor (born 1947)

Stephen Allen Schwarzman is an American businessman. He is the chairman and CEO of the Blackstone Group, a global private equity firm he established in 1985 with Peter G. Peterson. Schwarzman was chairman of former President Donald Trump's Strategic and Policy Forum.

<span class="mw-page-title-main">Sheldon Adelson</span> American businessman (1933–2021)

Sheldon Gary Adelson was an American businessman, investor, and political donor. He was the founder, chairman and chief executive officer of Las Vegas Sands Corporation, which owns the Marina Bay Sands in Singapore, and the parent company of Venetian Macao Limited, which operated The Venetian Las Vegas and the Sands Expo and Convention Center before selling the properties in early 2022. He owned the Israeli daily newspaper Israel Hayom, the Israeli weekly newspaper Makor Rishon, and the American daily newspaper the Las Vegas Review-Journal.

<span class="mw-page-title-main">Steve Cohen (businessman)</span> American billionaire hedge-fund manager, sports team owner (born 1956)

Steven A. Cohen is an American hedge-fund manager and owner of the New York Mets of Major League Baseball since September 14, 2020, owning just over 97% of the team. He is the founder of hedge fund Point72 Asset Management and S.A.C. Capital Advisors, which closed after pleading guilty to insider trading and other financial crimes.

<span class="mw-page-title-main">The Trump Organization</span> Businesses owned by Donald Trump

The Trump Organization is an American privately owned conglomerate owned by Donald Trump. It serves as the holding company for all of Trump's business ventures and investments, with around 250 of its affiliates and subsidiaries using the Trump name. Donald Trump joined the organization in 1968, began leading it in 1971, renamed it around 1973, and handed off its leadership to his children in 2017 after he won the 2016 United States presidential election.

<span class="mw-page-title-main">Kenneth C. Griffin</span> American billionaire hedge fund manager (born 1968)

Kenneth Cordele Griffin is an American hedge fund manager, entrepreneur and investor. He is the founder, chief executive officer, co-chief investment officer, and 80% owner of Citadel LLC, a multinational hedge fund. He also owns Citadel Securities, one of the largest market makers in the United States.

Safra Ada Catz is an Israeli-American billionaire banker and technology executive. She is the CEO of Oracle Corporation. She has been an executive at Oracle since April 1999, and a board member since 2001. In April 2011, she was named co-president and chief financial officer (CFO), reporting to founder Larry Ellison. In September 2014, Oracle announced that Ellison would step down as CEO and that Mark Hurd and Catz had been named as joint CEOs. In September 2019, Catz became the sole CEO after Hurd resigned due to health issues.

Jeffrey S. Yass is an American billionaire businessman. According to Forbes, Yass had a net worth of $27.6 billion in April 2024 which grew to $49.6 billion by September 2024 and is the richest man in Pennsylvania. He is a registered Libertarian who gives money to conservative super-PACs including Club for Growth Action and the Protect Freedom Political Action Committee. He and his wife Janine Yass are supporters of school choice, a cause to which they have donated tens of millions of dollars.

John Alfred Paulson is an American billionaire hedge fund manager. He leads Paulson & Co., a New York–based investment management firm he founded in 1994. He has been called "one of the most prominent names in high finance".

<span class="mw-page-title-main">Jack Dorsey</span> American internet entrepreneur, cofounder and ex-CEO of Twitter, founder of Bluesky (born 1976)

Jack Patrick Dorsey is an American Internet entrepreneur, philanthropist, and programmer, who is a co-founder and former CEO of Twitter, Inc. from 2015 until 2021, as well as co-founder, principal executive officer and chairman of Block, Inc.. He is also the founder of Bluesky.

<span class="mw-page-title-main">Miriam Adelson</span> American and Israeli physician and billionaire (born 1945)

Miriam Adelson is an Israeli-American physician, businesswoman, and political donor.

<span class="mw-page-title-main">Lei Jun</span> Chinese billionaire entrepreneur (born 1969)

Lei Jun is a Chinese billionaire entrepreneur and philanthropist. He is known for founding the consumer electronics company Xiaomi. As of October 2024, Lei's net worth was estimated at either US$21.1 billion according to the Bloomberg Billionaires Index, making him the 103rd richest person in the world, or at $21.2 billion by Forbes, ranking him 105 worldwide.

<span class="mw-page-title-main">Interactive Brokers</span> American financial services firm

Interactive Brokers, Inc. (IB), headquartered in Greenwich, Connecticut, is an American multinational brokerage firm which operates the largest electronic trading platform in the United States by number of daily average revenue trades. In 2023, the platform processed an average of 3 million trades per trading day. Interactive Brokers is the largest foreign exchange market broker and is one of the largest prime brokers servicing commodity brokers. The company brokers stocks, options, futures contracts, exchange of futures for physicals, options on futures, bonds, mutual funds, currency, cryptocurrency, contracts for difference, derivatives, and event-based trading contracts on election and other outcomes. Interactive Brokers offers direct market access, omnibus and non-disclosed broker accounts, and provides clearing services. The firm has operations in 34 countries and 27 currencies and has 2.6 million institutional and individual brokerage customers, with total customer equity of US$426 billion as of December 31, 2023. In addition to its headquarters in Greenwich, on the Gold Coast of Connecticut, the company has offices in major financial centers worldwide. More than half of the company's customers reside outside the United States, in approximately 200 countries.

<i>Bloomberg Billionaires Index</i> Ranking of the worlds 500 richest people

The Bloomberg Billionaires Index, launched in March 2012, is a daily ranking of the world's 500 richest people based on their net worth. It features a profile of each billionaire, and includes a tool that allows users to compare the fortunes of multiple billionaires. The index is updated every day at the close of trading in New York.

<span class="mw-page-title-main">Wealth of Donald Trump</span> 45th U.S. Presidents fortune

The net worth of President-elect Donald Trump is not publicly known. For decades, Forbes has assessed his wealth, currently estimating it at $5.5 billion as of mid-November 2024. Meanwhile, Bloomberg estimates his wealth at $6.32 billion as of the same date, although Trump himself claims a much higher net worth. He received gifts, loans, and inheritance from his father, who was a real-estate developer and businessman. Donald Trump's primary business has been real estate ventures, including hotels, casinos, and golf courses. He also made money from Trump-branded products including neckties, steaks, and urine tests. Money received through political fundraisers is used to pay for guest stays at properties owned by the Trump Organization and to pay his and his allies' lawyers.

References

  1. ↑ Burke, Monte (October 25, 2016). "The American Dream". Forbes . Archived from the original on December 13, 2019. Retrieved May 15, 2023– via PressReader.
  2. ↑ Bunge, Jacob (April 19, 2012). "Interactive Brokers Founder, CEO To 'Gradually' Retire". The Wall Street Journal . Archived from the original on December 11, 2014. Retrieved July 2, 2014.
  3. ↑ "Interactive Brokers [IBKR] - 05/04/2007". Nasdaq.com. Archived from the original on November 1, 2012. Retrieved October 16, 2012.
  4. 1 2 3 "Forbes Billionaires". Forbes. Retrieved March 5, 2024.
  5. ↑ "Twenty Billionaires Who Started With Nothing". www.bloomberg.com. December 6, 2010. Archived from the original on December 14, 2019. Retrieved December 13, 2019.
  6. 1 2 3 4 5 6 7 8 9 "Forbes profile: Thomas Peterffy". Forbes . Archived from the original on January 3, 2021. Retrieved January 17, 2021.
  7. 1 2 3 4 "Twenty Billionaires Who Started With Nothing - Living the American Dream - Businessweek (#17)". Bloomberg Businessweek . December 6, 2010. Archived from the original on June 17, 2016. Retrieved June 16, 2016.
  8. ↑ Story, Louise (November 11, 2005). "See! The Street Was Paved With Gold". The New York Times. Archived from the original on March 8, 2013. Retrieved June 17, 2016.
  9. ↑ "Thomas Peterffy". Forbes. Archived from the original on December 20, 2019. Retrieved December 13, 2019.
  10. ↑ Duberstein, Billy (January 14, 2019). "Interactive Brokers' CEO Steps Down: What Investors Need to Know". The Motley Fool. Archived from the original on July 28, 2020. Retrieved January 16, 2020.
  11. 1 2 "Interjú a leggazdagabb magyarral - "Ragaszkodtam hozzá, hogy Budapesten legyen a régiós központ"". Portfolio.hu (in Hungarian). June 3, 2021. Archived from the original on June 9, 2021. Retrieved June 9, 2021.
  12. 1 2 "Péterffy Tamás a BÉT-en: a grundon nevelkedett, ma már messze ő a leggazdagabb magyar". telex (in Hungarian). June 1, 2021. Archived from the original on June 9, 2021. Retrieved June 9, 2021.
  13. ↑ Fischer, Sara (May 2, 2023). "The Messenger to launch May 15 with 150 journalists". Axios. Archived from the original on May 13, 2023. Retrieved May 21, 2023.
  14. ↑ Mullin, Benjamin (March 10, 2023). "The Messenger, a Media Start-Up, Aims to Build a Newsroom Fast". The New York Times . Archived from the original on May 8, 2023. Retrieved May 21, 2023.
  15. ↑ McGee, Susan (November 10, 2005). "A Breed Apart". Institutional Investor Magazine. No. November 2005. Institutional Investor LLC. Archived from the original on September 24, 2015. Retrieved June 27, 2014.
  16. ↑ "Thomas Peterffy - Freedom To Succeed". YouTube. Archived from the original on October 11, 2012. Retrieved October 10, 2012.
  17. 1 2 Neil Vigdor. "Greenwich man splurging on his own ads". Connecticut Post. Archived from the original on September 26, 2013. Retrieved October 16, 2012.
  18. ↑ "Hungarian-born billionaire makes anti-socialism case in TV ad". Fox News. Archived from the original on October 15, 2012. Retrieved October 16, 2012.
  19. ↑ "The Cheerful Billionaire Who Thinks Obama's a Socialist". Bloomberg Business Week. BloombergBusinessweek. October 19, 2012. Archived from the original on October 21, 2012. Retrieved November 4, 2012.
  20. ↑ Parti, Tarini (November 3, 2012). "Billionaire Thomas Peterffy's 'socialist' ads raise questions". Politico. Archived from the original on November 5, 2012. Retrieved November 5, 2012.
  21. ↑ Coffey, Brendan (September 26, 2016). "Hillary Clinton Is Outraising Trump 20-to-1 Among Billionaires". Bloomberg Business News. Archived from the original on October 11, 2016. Retrieved October 10, 2016.
  22. ↑ "Donor Lookup". OpenSecrets.org. Archived from the original on January 25, 2023. Retrieved January 25, 2023.
  23. 1 2 3 Joshua Green (June 10, 2021). "Election Denial and $16 Spritzers: Welcome to Florida's Trump Coast". Bloomberg Business News. Archived from the original on June 13, 2021. Retrieved June 13, 2021.
  24. ↑ "Here Are The Billionaires Who Donated To Donald Trump's 2020 Presidential Campaign". Forbes. Retrieved March 27, 2024.
  25. ↑ Sutton, Sam (December 11, 2023). "Wall Street donors dreamed of a Trump alternative. Now they're waking up". Politico. Retrieved December 23, 2023.
  26. ↑ Allison, Bill (November 10, 2023). "Billionaire Home Depot Co-Founder Bernard Marcus Backs Trump" . Bloomberg. Retrieved December 23, 2023. Other prominent GOP donors have said they wouldn't donate to Trump, including Steve Schwarzman of Blackstone Group Inc., cosmetics heir Ronald Lauder and Interactive Brokers Group Inc. founder Thomas Peterffy.
  27. ↑ Gordon, Amanda L (November 16, 2022). "Donald Trump 'Can't Get Elected,' Billionaire Peterffy Says" . Bloomberg. Retrieved December 23, 2023.
  28. ↑ Smith, David (October 4, 2024). "Donald Trump's foul-mouthed migrant rant captured in private pitch to donors". The Guardian. ISSN   0261-3077 . Retrieved October 4, 2024.
  29. ↑ "Interactive Brokers Group IPO nearing its $500 mln debut". MarketWatch. Archived from the original on February 15, 2009. Retrieved October 16, 2012.
  30. ↑ "Listed: IBKR | IEX". iextrading.com. Archived from the original on April 1, 2019. Retrieved April 1, 2019.
  31. ↑ Carey, Theresa W. (October 19, 2009). "Margin Expands Regardless of Rate". Barron's. Archived from the original on July 1, 2012. Retrieved October 10, 2012.
  32. ↑ Miller, Matt (February 25, 2019). "Best Online Brokers". Barron's. Archived from the original on April 1, 2019. Retrieved April 1, 2019.
  33. ↑ "Product Listings". OneChicago. Archived from the original on October 8, 2018. Retrieved March 15, 2019.
  34. ↑ Brown, Abram (November 5, 2014). "Billionaire Thomas Peterffy Practically Invented Digital Trading. Now He Wants To Be Your Broker". Forbes. Archived from the original on November 6, 2016. Retrieved January 13, 2020.
  35. 1 2 Massa, Annie (March 2, 2022). "A Billionaire's Heir Hangs Up His Healing Crystal to Fix Capitalism". Bloomberg LP. Retrieved March 9, 2024.
  36. ↑ Keil, Jennifer. "Greenwich's largest estate listed for $65M". The New York Post. Archived from the original on July 26, 2015. Retrieved July 22, 2015.
  37. ↑ "Greenwich's largest estate sells for $21 million". Greenwich Times. November 22, 2017. Archived from the original on May 1, 2018. Retrieved April 30, 2018.
  38. ↑ Flóra, Nagy (June 1, 2021). "Orbán Viktor fogadta Péterffy Tamást". index.hu (in Hungarian). Retrieved June 9, 2021.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.