Crosses aren’t the only way to get large blocks done on an options exchange. Market makers are still willing to negotiate over large trades.
Negotiations used to take place in the pits, but now more trading is done electronically. That makes negotiating more challenging.
Joe Corona, director of strategic planning at Liquidpoint, a unit of agency brokerage BNY Convergex that services other brokers, told the crowd at this year’s OIC that exchanges and firms such as his are trying to replicate the negotiation process electronically with vendor technology and exchange mechanisms.
"That is where the innovation needs to take place," Corona said. "There is a lot of improvement to be made in terms of seeking, finding and matching process."
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