Michael John Palumbo (born October 28, 1966 in Chicago, Illinois) is an American business magnate, ex-CBOE (Chicago Board of Options Exchange) floor trader, entrepreneur, venture capitalist, and sports enthusiast. Palumbo is the founder and controlling partner of Third Millennium Trading, LLP., Third Millennium Trading, LLC., and TMT Investments, LLC., all Chicago-based proprietary trading and market making firms.
Palumbo is also the principal of MJP Capital, LLC., a private Midwest regional holding company focusing on both real estate and technology. The two main ventures of MJP Capital are Ceres Acquisitions, and CeresTech.
Palumbo is known for turning $250,000 into over $100 million within ten years of founding Third Millennium Trading, LLP. (TMT) in 1996.
Palumbo is also recognized as the original venture capitalist who provided the initial funding for the high-frequency trading firm GETCO.
In August 2007, VH1 featured Palumbo in the documentary The Fabulous Life of Wall Street Billionaires – Ballers. Also in 2007, Palumbo was highlighted in the book Trade with Passion and Purpose.
Palumbo began his career as a credit analyst at Duff & Phelps, where he analyzed the bond insurance industry. He then started his CBOE floor career as a clerk for Susquehanna Financial Group in 1993. During his employment at Duff & Phelps, Palumbo created one of the first stress test models for bond insurance using Monte Carlo Simulation.
Palumbo initially founded Third Millennium Trading, LLP. in 1996, with Third Millennium Trading LLC. subsequently founded in 2002.
Specializing in equity options at the Chicago Board Options Exchange (CBOE), Palumbo historically traded short-term options (holding positions for less than a month) in conjunction with analyzing macroeconomic news and events.
Though Third Millennium Trading, LLP. experienced some difficulty in 1998, the firm quickly rebounded to profitability in 1999.
In 2000, Third Millennium Trading, LLP. was one of the largest volume equity-market-making trading firms in the world. By 2006, Palumbo's initial $250,000 in Third Millennium Trading, LLC. had grown to over $100 million. In addition, Palumbo (through Third Millennium Trading, LLP.) was also the main venture capitalist behind the funding of GETCO Holding Company, LLC. in 2000. GETCO Holding Company, LLC. is now publicly held through the merger with Knight Capital Group in late June 2013.
In 2007, Palumbo was featured in the book Trade with Passion and Purpose. Also in August 2007, VH1 featured Palumbo in the documentary The Fabulous Life of Wall Street Billionaires – Ballers.
After having his best year trading in 2007, a year in which he made over $100 million purely from trading, 2008 proved the worst year in Palumbo's trading career. In January 2008, Palumbo's firm sustained losses large enough to trigger a margin call, which resulted in a lawsuit by Palumbo against Merrill Lynch. Additionally, in 2008, Palumbo founded TMT Investments, LLC., which has since become the operating entity for all trading activities. Also in 2008, Third Millennium Trading, LLP. moved its trade clearing from Merrill Lynch to Goldman Sachs.
In 2010, Palumbo and Third Millennium Trading, LLC. were awarded an undisclosed amount in mediation with Merrill Lynch.
Palumbo is still the controlling partner of TMT Investments, LLC., which continues to operate on the CBOE, specializing in various financial products. He is also the principal of MJP Capital, LLC., a private Midwest regional holding company focusing on both real estate and technology. The two main ventures of MJP Capital are Ceres Acquisitions, and CeresTech.
Michael John Palumbo was born in Illinois and adopted at birth by parents JoAnne and Marino Palumbo in 1966. He graduated from Archbishop Quigley Prep Seminary High School (Chicago) in 1984. Palumbo then received his Bachelor of Science in Management Information Systems from Illinois Institute of Technology in 1988. He then completed his Master of Business Administration in Finance and Economics at Northwestern University in 1990, at the age of 23.
Palumbo loves to travel and enjoys his summers on his megayacht Perseverance II with his family and friends. Despite not receiving his passport until his thirties, Palumbo has traveled extensively since, with his yacht seeing many exotic locations, including the Greek Isles, French Riviera, and the Caribbean.
He has four children: Christina, Michael, Matthew, and Samantha. He married Veronica Najera in Saint Barthelemy, in a four-day, 120-guest wedding. The couple currently lives in the Gold Coast neighborhood of Chicago.
Of the eight tickets on the floor adjacent to the Chicago Bulls, Palumbo holds season tickets to the four seats closest to the home bench, where he can be seen at most games."The Fabulous Life of Billion Dollar Wall Street Ballers", Documentary. Sharp Entertainment, VH1. August 2, 2007. Accessed: January 2014.
"VH1 - The Fabulous Life Of Wall Street Billionaires - Ballers" - Full HD; 40.01 – 42.46. December 31, 2012. Last accessed: July 2013.
"Trade With Passion and Purpose: Spiritual, Psychological and Philosophical Keys to Becoming a Top Trader" (Wiley Trading). Whistler, Mark, 2007. John Wiley & Sons, Inc., New Jersey. Chapter 4: The Balance of Humbleness. Page 50.