Weather Forecast for the U.S. Equities Options Industry: Cloudy With a Chance of Showers
Report Summary
Weather Forecast for the U.S. Equities Options Industry: Cloudy With a Chance of Showers
Though The U.S. Listed Equities Options Industry Faces Strong Headwinds, The Forecast Is Not All Doom And Gloom.
Boston, July 17, 2013 - After experiencing 20 consecutive years of nearly parabolic growth, U.S. listed equities options volume declined a whopping 13% in 2012. On such seas, the U.S. listed equities options industry faces plenty of strong headwinds, among them possible liquidity fragmentation from Penny Pilot Program success, frequent IT glitches, and possible changes in the existing tax law that governs derivatives. The weather forecast for this industry is not all doom and gloom, however--silver linings include new listed options product innovations and an improving education effort by the OIC to reach out to the investing public. These positive factors will continue to propel this industry's growth, even under the shadow of regulation.
This options industry landscape report, written by senior analyst Howard Tai, analyzes how the options trading environment has evolved in recent years as a result of the rise of new technology, the changing regulatory landscape, and new market participants that are increasingly attracted to using listed options as a trading vehicle and a potential source of alpha. The report is based on January through May 2013 Aite Group conversations with options exchanges, derivatives clearing organizations, market-makers, banks and investment banks, institutional brokers, retail aggregators, proprietary trading firms (including high frequency trading shops), traditional buy-side asset managers, hedge funds, and technology vendors.
This 39-page Impact Report contains 19 figures and two tables. Clients of Aite Group's Securities & Investments service can download the report.