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The U.S. Equity Options Landscape: More Options Than Ever - An Exchange-Traded Equity Derivative Primer - Aite Group Estimates That Structural, Regulatory, And Technological Changes Are Driving Increased Volumes In Exchange-Traded Equity Derivatives

Date 22/05/2007

According to a new Impact Report from Aite Group, LLC, 2007 will be a watershed year for the U.S. equity options landscape. Structural and regulatory changes, combined with hedge fund and institutional capital flows into strategies that utilize exchange-traded options, are driving unprecedented levels of volume growth in the marketplace.

As these changes impact the options market, the technologies required to access options trading platforms have become increasingly sophisticated. The result is an entirely new type of smart routing and an algorithmic approach to accessing liquidity in the options market, both of which are capable of handling the increased volumes and are on par with the technologies used in the other marketplaces.

"As the popularity of equity options continues to grow and the technology catches up with that of other markets, structural change has become inevitable," says Brad Bailey, senior analyst and author of the report. "The trading of options has changed dramatically during the last several years, and in many ways, this has just been a dress rehearsal for things to come."

This 49-page Impact Report contains 27 figures and 9 tables and provides an overview of the forces that are impacting the U.S. options market. Clients of Aite Group's Institutional Securities & Investments services can download the report by clicking on the icon below.