Business Plan: High Frequency Trading (HFT) by Ametheus USA Corporation Inc. and Ametheus Holdings Pvt Ltd

1. Executive Summary

  • Company Names: Ametheus USA Corporation Inc. (U.S.) and Ametheus Holdings Pvt Ltd (India).
  • Mission: Deliver superior returns through cutting-edge technology and autonomous trading strategies across global financial markets.
  • Vision: Become a leading High Frequency Trading (HFT) firm by mastering ultra-low latency and diversified quantitative trading worldwide.
  • Objective: Launch operations within 12 months, achieve profitability in 18 months, and capture 1% of HFT market volume across U.S. equities, global futures, oil markets, Indian exchanges, and forex within 3 years.
  • Structure Overview: Ametheus USA drives U.S. and global markets (excluding India), while Ametheus Holdings Pvt Ltd focuses on Indian markets. Both leverage shared technology and phased growth for clarity and efficiency.
    • Why Two Companies?: U.S. entity targets high-liquidity U.S./global exchanges with regulatory ease from New York. Indian entity taps India’s growing market (e.g., MCX) under local compliance, optimizing operations and investor appeal in each region.

2. Market Analysis

  • Industry Overview: HFT is a $10B+ industry driven by speed and automation (e.g., Virtu: $1.6B revenue, 2023; TABB Group).
  • Target Markets (Phased for Investor Clarity):
    • Phase 1 (Year 1 – U.S.-Centric, Ametheus USA Corporation Inc):
      • U.S. Equities (NYSE, NASDAQ): $500B daily volume.
      • U.S. Futures (CME, including NYMEX WTI): $200B+ daily, WTI at $50B+.
      • Forex (Major Pairs): $7T daily.
      • Why?: High liquidity, proximity to NY headquarters, and U.S. regulatory familiarity make this the starting point.
    • Phase 2 (Year 2 – Global Oil, Ametheus USA Corporation Inc):
      • ICE (Brent): $50B+ daily.
      • DME (Oman Crude): $10B daily.
      • INE (Shanghai Crude): $5B-$10B daily.
      • TOCOM (Oil Futures): $1B-$5B daily.
      • SGX (Oil Derivatives): $1B-$5B daily.
      • Why?: Oil’s volatility (e.g., WTI $20-$80, 2020-2022) and global benchmarks offer arbitrage opportunities post-U.S. success.
    • Phase 3 (Year 3 – Indian & Additional Global, Ametheus Holdings Pvt Ltd [India] + Ametheus USA Corporation Inc):
      • MCX (India – Crude Oil, Metals): $5B daily (Ametheus Holdings Pvt Ltd).
      • Eurex (Europe Futures): Varies by contract (Ametheus USA).
      • Why?: India’s growth (MCX) and Europe’s stability (Eurex) diversify revenue; separate Indian entity ensures local compliance.
  • Opportunity: Volatility and liquidity fragmentation across phases enable HFT profits (VIX >30, CBOE; oil swings).
  • Challenges: Regulatory complexity (SEC, CFTC, SEBI), costs, talent ($300K+ salaries, Glassdoor 2024).

3. Business Strategy

  • Core Differentiator: Hybrid cloud-edge infrastructure with FPGA acceleration for sub-microsecond latency, paired with Google Cloud for scalability.
    • Why It Works: Latency <1µs beats competitors (100-500ns, TABB Group); FPGAs (10x CPU speed, Xilinx) and Google Cloud scale across U.S., global, and Indian markets.
  • Revenue Model: Proprietary trading profits from arbitrage, market-making, and statistical strategies.
    • Proof: HFT margins 30-50% (McKinsey 2021).
  • Key Strategies (Simple and Phased):
    1. Ultra-Low Latency Execution: Co-locate edge nodes at exchanges per phase.
      • Why?: Cuts 10-20µs (exchange data), critical for HFT success.
    2. Autonomous Innovation: Independent teams per company develop strategies (e.g., Brent-WTI spreads, MCX oil-metal arbitrage).
      • Why?: Autonomy drives creativity; Python (70% quant use, QuantCon 2023) and KDB (1M+ events/sec) support this.
    3. Tech Efficiency: Kubernetes, Airflow, React/NodeJS for deployment, orchestration, monitoring.
      • Why?: Kubernetes (<1% downtime, CNCF) and Airflow streamline operations globally.
    4. Risk Control: Real-time risk management, BigQuery post-trade analysis.
      • Why?: BigQuery (1PB in 30s, Google) ensures compliance across jurisdictions.

4. Operational Plan

  • Structure: Both companies feature autonomous trading teams with shared tech (hardware, software, connectivity) and resources (management, legal, compliance, risk). Core engineering teams per entity own platform architecture—market data, trend analysis, simulations, order management, real-time support, risk, and post-trade services.
    • Why?: Shared tech reduces costs; separate entities align with local regulations and execution.
  • Technology Stack (Same for Both):
    • Market Data: KDB, FPGA, Kafka.
    • Trading Platform: Python (Pandas, NumPy, Dask), NodeJS/React, Kubernetes.
    • Infrastructure: Google Cloud (Spanner, BigQuery), edge nodes.
    • Storage: MongoDB.
    • Why?: Balances speed, scalability, and agility for all markets.
  • Team Structure:
    • Ametheus USA Corporation Inc: Core Engineering (10-15), Trading Teams (3-5, 5-7 each), Support (5-10).
    • Ametheus Holdings Pvt Ltd (India): Core Engineering (5-10), Trading Teams (1-2, 5-7 each), Support (3-5).
    • Why?: U.S. scales larger initially; India starts lean, grows in Phase 3 (50-100 total engineers typical, Jump Trading).
  • Timeline (Detailed by Phase):
    • Phase 1 (Months 1-12, Ametheus USA Corporation Inc):
      • Months 1-3: Hire 15 engineers, 20 traders; co-locate at NYSE, CME/NYMEX; design platform.
      • Months 4-6: Build, integrate tech; backtest U.S. equities, WTI, forex strategies.
      • Months 7-9: Simulate trades (e.g., S&P 500 futures, WTI arbitrage); ensure SEC/CFTC compliance.
      • Months 10-12: Soft launch with $5M capital, targeting 0.1% volume ($5B daily traded).
    • Phase 2 (Months 13-24, Ametheus USA Corporation Inc):
      • Months 13-15: Co-locate at ICE, DME, INE; hire 5 more traders for oil focus.
      • Months 16-18: Backtest oil strategies (e.g., Brent-WTI spreads, Oman arbitrage).
      • Months 19-21: Simulate, refine; comply with international rules (e.g., UAE for DME).
      • Months 22-24: Scale to 0.5% volume ($20M revenue), add TOCOM, SGX.
    • Phase 3 (Months 25-36, Ametheus Holdings Pvt Ltd [India]+ Ametheus USA Corporation Inc):
      • Months 25-27: India—hire 10 engineers, 10 traders; co-locate at MCX. USA—co-locate at Eurex.
      • Months 28-30: Backtest MCX oil/metal arbitrage; Eurex futures strategies.
      • Months 31-33: Simulate, comply with SEBI (India), MiFID II (Europe).
      • Months 34-36: Full launch, 1% volume ($50M revenue).

5. Financial Projections

  • Startup Costs: $15M Total ($12M USA, $3M India)
    • Ametheus USA: $12M
      • Hardware/FPGAs: $4M (400 units).
      • Co-location: $2.5M (NYSE, CME, ICE, DME, etc.).
      • Software/Cloud: $1.5M.
      • Talent: $4M (15 engineers at $300K, 20 traders at $200K).
    • Ametheus Holdings Pvt Ltd (India): $3M
      • Hardware/FPGAs: $1M (100 units).
      • Co-location: $0.5M (MCX).
      • Software/Cloud: $0.5M.
      • Talent: $1M (5 engineers at $100K, 5 traders at $100K).
    • Proof: $10-20M HFT norm (fintech reports); India costs lower due to local rates.
  • Revenue (Phased):
    • Year 1: $5M (Ametheus USA, 0.1% U.S./NYMEX/forex).
    • Year 2: $20M (Ametheus USA, 0.5%, +oil).
    • Year 3: $50M (Ametheus USA $40M, Ametheus Holdings Pvt Ltd $10M, 1% total).
    • Why?: Scales with phases; 1% = $5B daily, oil adds $100B+ notional.
  • Profit Margin: 30-40% (McKinsey).
  • Funding: $10M VC (USA), $5M founders ($4M USA, $1M India).

6. Risk Management

  • Market Risk: Diversify across U.S., oil, Indian assets.
    • Why?: Mitigates crashes (e.g., 2020 WTI -$37).
  • Tech Risk: Redundant nodes, dashboards (99.99% uptime, Google SLA).
  • Regulatory Risk: Ametheus USA (SEC, CFTC, international); Ametheus Holdings Pvt Ltd (SEBI).
  • Execution Risk: Phased rollout, simulations (50% loss reduction, HFT studies).

7. Growth Plan

  • Year 1 (Phase 1 – Ametheus USA): U.S. equities (NYSE), futures (CME/NYMEX: WTI), forex.
  • Year 2 (Phase 2 – Ametheus USA): Oil (ICE: Brent, DME: Oman, INE: Shanghai, TOCOM, SGX).
  • Year 3 (Phase 3 – Ametheus Holdings Pvt Ltd (India) + Ametheus USA Corporation Inc): India (MCX: oil/metals), global (Eurex).
    • Why?: Phased growth ensures focus; dual entities optimize local execution.

8. Company Details

  • Ametheus USA Corporation Inc.:
    • Legal Structure: Delaware corporation (tax/investor benefits).
    • Headquarters: New York (60% HFT firms, TABB Group).
  • Ametheus Holdings Pvt Ltd (India):
    • Legal Structure: Private Limited Company, India (SEBI compliance) * Pvt Limited will be converted to a Limited company.
    • Headquarters: Mumbai (MCX proximity).

9. Next Steps (Immediate Actions)

  • Pilot: Test FPGA edge node at CME (latency <500ns, Ametheus USA).
  • Recruit: USA—KDB/FPGA experts ($300K); India—local talent ($100K).
  • Funding: Demo speed/simulations for VCs ($10M USA focus).

10. Suggestion and Collaboration

  • Suggestion: Leverage hybrid cloud-edge infrastructure for ultra-low latency across U.S., oil, and Indian exchanges.
  • Collaboration: Contact gks@ametheus.com for inquiries.

Clarity for Investors and Implementation

  • Phased Approach: Year 1 (U.S.), Year 2 (Oil), Year 3 (India/Global) keeps scope digestible.
  • Dual Entities: Ametheus USA handles U.S./global (ex-India); Ametheus Holdings Pvt Ltd focuses on India—clear roles avoid overlap.
  • Detailed Timelines: Monthly breakdowns per phase ensure implementability.
  • Financials: Split costs/revenue by entity for transparency.
  • Why It Works: Starts with U.S. strengths (liquidity, proximity), scales to oil (volatility), then India (growth), all leveraging shared tech.
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