The Options Industry Council (OIC) today presented the results of the study, “European Interest in U.S. Options: Factors Driving Renewed Demand,” conducted by Tabb Group and commissioned by OIC. The study findings show a sustained interest in the use of U.S. options by European investors driven by factors including the depth of liquidity, strength and accessibility of U.S. options markets in the current regulatory climate.
The Tabb Group study found that European demand for U.S. equity exposure has risen over the past several years. European investors now hold 1.9 trillion in U.S. equities, which represents an increase of 75 percent from 2009. The study also found that as European investors are increasing their exposure to U.S. equity markets, they are increasing their use of U.S. options as well.
This year’s Tabb study is the third that OIC has commissioned on European participation in U.S. options markets. Previous studies were conducted in 2006 and 2011. The 2011 study, “European Demand for US Listed Options,” found that European investors accounted for 10 percent U.S. listed options volume. Results from this latest study show European participation still accounts for a significant proportion of U.S. options volume and is likely to increase as the appeal and access of U.S. options markets continue to attract European market participants.
To access the full study, visit: http://www.optionseducation.org/documents/literature/files/euro-interest-us-options-tabb.pdf.