Institutions Drive Options Volume Skyward
Hedge Funds Spread Good Cheer to Brokers and Exchanges
Traders Magazine, July 2007
Institutional trading is the main driver behind the continued surge in options volume, and, as with other asset classes, it is hedge funds doing most of the trading. Looking at options trading over the last 10 years, one notices the dramatic shift in the industry's customer base, says a recent report from Aite Group, a Boston-based financial services and technology consultancy. In 1997, 80 percent of total options volume came from retail investors. Today, Aite Group reports, slightly more than half-54 percent-of trading comes from institutions.
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