On the regulatory front, a handful of new policies are set to affect the options market and will likely enhance transparency, execution, and market data. Meanwhile, the cash equities business has hit a level of maturity and we are now trending toward better tools for block crossing and less resource intensive methods of trading.
According to Ralph Edwards, we now see options traders moving from a tactical to a more strategic use of these tools, further blurring the lines between equity and options trading.
In the past, options traders expected to pay for capital in order to get timely executions with limited market impact. Today, more investors are making use of electronic platforms in hopes of bringing commissions down. But there is a growing class of trade that requires particular skill in options trading along with the right relationships in the options markets.
ITG’s team of experts from the US, Canada, and Asia Pacific discuss 2011′s exchange merger frenzy and how it affects the buyside.
At the beginning of 2011, Jamie Selway offered his market structure thoughts for the coming year. As in years past, a reconciliation of the previous year’s list with actual outcomes is included.
With the insight of ITG client execution data, ITG researchers evaluate which algorithms are most appropriate during volatile market conditions for each objective (alpha generation, alpha preservation and risk management).
The benefits of multi-asset system are undeniable—reduced possibility for data entry error, consolidated compliance, enterprise-wide risk management, and standard benchmarking for trading—not to mention seamless integration of data and workflow.
