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.
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.
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.
