Chicago Options Entrepreneurs Net Millions From IG Stock Sale

(Bloomberg) -- Tom Sosnoff and Scott Sheridan sold about £65 million ($86 million) worth of IG Group Holdings Plc shares in the first big selldown since their Chicago-based options-trading business was bought by the British firm three years ago.

The Tastytrade Inc. co-founders offloaded 6.5 million IG shares to institutional investors, representing about 1.8% of the existing shares, according to a statement. The deal was announced after shares closed at a record-high of 992 pence on Wednesday. The stock dropped 2.2% on Thursday, trimming its year-to-date gain to 27%.

The former Chicago Board Options Exchange floor traders were among Tastytrade management shareholders that received 5.7% of IG stock as part of a $1 billion deal in 2021. IG’s purchase of the company came amid a surge in demand for online trading services during the Covid-19 pandemic.

Prior to Wednesday’s share sale, Sosnoff held about 14.9 million shares in IG, according to data compiled by Bloomberg. Sosnoff and Sheridan also founded the options platform Thinkorswim Group, which was sold for about $606 million in 2009.

Bloomberg has reached out to Sosnoff and Sheridan for comment through an IG spokesperson.