Chicago City Wire

William Carlson, founder of Belvedere Trading LLC, announced that he launched the firm through Chicago Board Options Exchange (CBOE) channels and plans to provide new details to the exchange's board about the company’s history and conduct. This statement was made in an email.

"I founded this company alone in January, 2002," said Carlson. "I founded this company as member of the CBOE, recruited CBOE people, with offices @ 440 S LaSalle CBOE building. I alone was responsible for Belvedere Trading LLC becoming a CBOE member firm."

In May, Carlson filed a formal complaint with the Illinois Attorney Registration and Disciplinary Commission against Mark Francis Duffy, a former director at CBOE. According to Carlson, Duffy was retained in 2011 to investigate Belvedere Trading but failed to act on substantial evidence of financial irregularities and internal misconduct. The complaint suggests that Duffy's inaction, despite his dual role as legal counsel and CBOE insider, contributed to ongoing misconduct within the firm. Carlson further claims that Duffy was compensated between $15,000 and $20,000 and accuses him of shielding federal crimes rather than merely exhibiting legal negligence.

Carlson asserts that between 2006 and 2008, personnel at Belvedere Trading allegedly engaged in unauthorized financial transfers involving seven-figure wire movements. He maintains that some transactions were directed to family members of insiders to prevent disclosures, indicating a pattern of concealment and financial manipulation. He states that none of these transactions were authorized by him during his tenure as Managing Member and that they violated multiple federal regulations.

A forensic audit prepared in 2010 by Robert Cooper & Company CPAs, P.C., uncovered by Carlson in October 2024, outlines what he describes as a deliberate scheme to deprive him of tens of millions in profits and equity. The report indicates there was no formal method of profit and loss allocations and that members of Belvedere misled him into agreeing to final economic allocations without proper review.

Carlson is the founder of Belvedere Trading LLC, a Chicago-based proprietary trading firm established in 2002. He launched the company through Willis Capital LLC by investing his life savings of $405,000. Initially holding a 62% ownership stake, he served as the sole managing member. His partners Owen O’Neill and Thomas Hutchinson contributed $160,000 and $85,000 respectively.

Belvedere Trading specializes in equity index and commodity derivatives. It established its presence on the floor of CBOE's SPX pit and has since invested in proprietary technology and risk management capabilities.