The millionth AEX weekly option was traded on Euronext.liffe in Amsterdam just four months after the contracts were launched on 26 May 2006.
Thanks to heavy customer demand for innovative new products Euronext.liffe’s AEX weekly options have become the world’s most actively traded one-week options, with average trading volumes of over 13,000 contracts a day.
Fraser Cowie, Executive Director of Marketing at Euronext.liffe, said, “We developed AEX weekly options in conjunction with the market, so we knew there was demand for this type of product. However, the popularity of weekly options has surpassed our expectation. For a new contract to trade one million lots in its first four months shows that investors see weekly options as a very useful investment tool”.
René Frijters, Director of Alex Beleggersbank, said, “As we are the biggest bank for retail investors in the Netherlands we have been aware for some time of the high level of demand among our customers for short-term options. I am proud to say that Alex’s customers were behind a third of the million contracts that have been traded so far.”
Jelle Elzinga, Director of Optiver, said, “This product is a perfect response to market demand and the pace of activity on the market. It is an excellent example of how well exchanges, users and liquidity providers can work together.”
Trading in AEX weekly options is supported by Euronext.liffe’s successful screen-trading market model, which was developed in Amsterdam. The contracts are traded on the LIFFE CONNECT® trading platform.
About Euronext.life
Euronext.liffe is the international derivatives business of Euronext. It is the world's second largest derivatives exchange measured by the value of business transacted via the exchange every day. Euronext.liffe has created a single market for derivatives by bringing all its derivatives products together on a single electronic trading platform, LIFFE CONNECT®. The replacement of multiple trading venues with a single market has made cross-border trading easier and cheaper. To find out more, visit www.euronext.com.
