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European Demand For U.S. Options Continues To Be Strong With Usage Growing More Diversified, New Study Finds

Date 27/03/2014

The Options Industry Council (OIC) today presented the results of the study, “Shifting Demand in a Changing Market Landscape,” conducted by TABB Group and commissioned by OIC. The study found European investors continue to be interested in using U.S. options while becoming more sophisticated, shown by an expansion in the use of directional and volatility strategies. There is also a greater use of sector ETFs and options on single stocks.

The TABB Group study findings indicate that European investors remain an important source of demand for U.S. listed options, with the magnitude of their U.S. equity holdings driving demand for premium and hedging strategies. In particular, one key finding shows private wealth managers have expanded their use of U.S. listed options, as electronic access and rising client assets under management are driving increased adoption. As U.S. demand grew in 2013, the overall proportion of flow from Europe declined marginally, but TABB’s research clearly identified rising interest from a broad range of European investors.

This latest TABB study is the fourth that OIC has commissioned on European participation in U.S. options markets.  Previous studies were conducted in 2006, 2011 and 2013.

To access the full study, visit: http://www.optionseducation.org/tabb_european_2014.html