Twin Tree Management

Dave Simon serves as Chief Investment Officer, a role he was formally elevated to in September 2023 according to the firm's official communications. Simon is a co-founder of the firm and has led trading strategy and risk management since its inception in 2002. He works alongside CEO Darren T. Baccus.

Twin Tree sources the vast majority of its flow as a direct counterparty to major investment bank derivatives desks. The firm prices and hedges structured product and ETF-linked options flow, rather than competing for trades in the open market. This bank-intermediated model gives it access to an enormous, recurring notional volume of customer-driven order flow.

Twin Tree operates as a proprietary trading firm with a market-making function. It deploys its own capital to warehouse and hedge substantial options risk that banks offload, blurring the line between a traditional liquidity provider and a principal risk-taker. The firm does not serve external retail or institutional customers directly.

The firm's book is concentrated in listed equity options, ETF options, variance swaps, and customized OTC equity derivatives. Core activity centers on US equities and indices, though positioning extends into European and Asian markets through index rebalancing trades and corporate event hedging. The firm is not known to participate in fixed income, credit, or commodity derivatives in a material way.

No. Twin Tree does not manage external investor capital. The firm has never registered as an investment adviser or operated a fund for outside limited partners. All capital deployed is partner and firm equity, which structurally separates it from the redemption and liquidity pressures of a traditional hedge fund.

Twin Tree does not run external capital, has no investor relations function, and operates a single, deeply integrated derivatives book rather than competing pod-based strategies. Its P&L is driven by the spread captured on massive, recurring options flow rather than by discretionary single-stock calls or asset-class rotation. The firm's economics are more akin to an exchange-designated market maker than a traditional hedge fund.

Twin Tree acts as a critical hedging counterparty for the bank desks that manufacture structured notes, variable annuities, and ETF-linked products. When banks package customer-facing derivatives, they offload the resulting options risk — often to firms like Twin Tree. This makes the firm an essential piece of the supply chain that delivers options-linked retail and institutional products.