Whirling Derivatives: Options and futures blurring on the edges
Traders Magazine, June 2006
Convergence is a buzzword these days, except in derivatives. In the futures and options markets, convergence is more than a buzzword. Many exchanges see it as the future, although this has not always been the case. For decades, the two halves of the derivatives world all but ignored each other. After all, futures and options are two distinct product classes that require two very distinct marketplaces. These marketplaces even have different regulators, with the SEC watching over the options markets and the CFTC guiding the futures markets. In just about every respect, futures and options are different worlds. However, the fence between those worlds may not last much longer.
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