Commentary

Ivy Schmerken
Traders Magazine Online News

MiFID II Transparency Puts Stress on Data Architecture

Buy-side firms are facing huge changes in disclosure and transparency requirements, which could upend their data management architectures, according to this guest commentary from FlexTrade.

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More News - Options

BOX Open Outcry Trading Floor Set to Open

Traders in the Windy City are about to get a new trading floor to trade options contracts but with a twist – live open outcry traders working orders the old-fashioned way – via telephones and voice.

US Options Volume Drifts Higher in June as Volatility Remains Muted

Listed options volume totaled 374.4 million in June 2017, an increase of 7.8 million contracts from May 2017 and a 1.8 percent increase from June 2016, according to the latest options LiquidityMatrix report from Tabb Group.

FLASHBACK FRIDAY: New York Stock Exchange Roils Options World

It was a time of acquisition mania in the options mart back in 2005 as the NYSE has just purchased rival Arca Ex, which in turn had itself just acquired the Pacific Coast Exchange. The grab for market share in these equity derivatives exchanges was the key to profitability, the thinking went. But compared to today’s trend of increased fragmentation in options, the idea of monopoly or oligopoly seems ludicrous.

Options Are Effective Means to Increase Alpha

According to Grant Johnsey, Head of Institutional Sales at Northern Trust’s Brokerage division, who recently spoke with Traders Magazine, options can be effectively used in a buy-side trader’s portfolio easily and boost his alpha capture.

Providing Stability for the U.S. Listed Equity Options Market

In this blog shared with Traders Magazine, the CEO of the OCC shares his thoughts on what keeps him up at night - financial tax reform.

S3 Launches Options Best Ex 2.0 Execution Analysis System

S3 has added midpoint analytics to help measure best execution.

WEX Launches RFQ System to Mirror High Touch Execution in Options

Wolverine Execution Services announced today the launch of “Request For Quote” which shortens the traditionally long and potentially error-prone process down to a simple and shorter electronic one.

FLASHBACK FRIDAY: Exchange Fatigue

After Reg NMS was born and gave birth to dozens of public and private stocks exchange, derivatives were still traded among a handful of venues. But then in the shadows of the 2007 financial crisis, new exchanges looking to grab options market share sprang up. Let’s take a look at the birth of fragmentation – in the options market – which is still going strong today.

Options Market Structure: Fragmented Reality

In this contributed blog from FlexTrade, author Ivy Schmerken writes that some experts are debating whether the complexity of the listed U.S. options market structure is hurting liquidity providers and driving some market makers out of the business.

Two Sigma Securities to Buy US Options-Market-Making Business of Interactive Brokers

Two Sigma Securities, the market-making affiliate of Two Sigma Investments, has reached an agreement to acquire the U.S. options-market-making business of Timber Hill, a subsidiary of Interactive Brokers Group, the companies announced today.

More Fragmentation, Fewer Market Makers Seen in Options Mart

There’s more going on in the options market than meets the eye. In a recent STA call, WEX's Jason Lichten said he expects more fragmentation and market making to remain a tough business.

Bats Announces New Complex Order Options Functionality

The new functionality is expected to form the foundation for all complex orders handled by CBOE markets, which are currently migrating to proprietary Bats technology in a multi-year, multi-step process.

QuantConnect Announces Open-Source Support for Futures and Options

QuantConnect users can now design strategies that use multiple asset classes for increased diversification and alpha generation. QuantConnect now supports five asset classes: equities, cash foreign exchange, futures and options from opening tick to daily resolution.

Interactive Brokers Group to Cease Options Market Making

Interactive Brokers Group announced that it was getting out of the options market making business.

Nasdaq Targets Options Growth

Nasdaq, whose purchase of International Securities Exchange eight months ago increased its share in U.S. options to about 40%, is working to expand what has been a largely stagnant market over the past few years.