STAC Mid-Winter Conference Summary, Part Six
Continuing our coverage of the STAC 84th Annual Mid-Winter Meeting, TheOptions Insider finishes coverage of the Best Execution panel.
To read the first installment of the summary for this panel, please click here.
Further coverage of the meeting includes parts one, two, and three of the Exchange Leaders panel, and Converging Institutional and Retail Needs.
The featured speakers were:
- Moderator: Chris Nagy, TD Ameritrade
- Chris Larkin, E*TRADE Securities, LLC
- John Standerfer, S3 Matching Technologies
- Joseph Sellitto, Susquehanna Investment Group
- Alan Shapiro, The Transaction Auditing Group
- Joanna Fields, SIFMA, Deutsche Bank
The question of routing led Chris Larkin to opine that as long asspeeds are going down, retail investors arenít interested in othertypes of information. Retail customers have great resources ofeducation at their disposal and prices are relatively inexpensive.
Larkin noted that for his customers, the opening process is the mostcommon area of concern, but that otherwise customers are happy. Heconcluded that self-policing has made best markets possible.
Share your thoughts on best execution in the forum.
Endless Source of Data
The amount of data disseminated in the options marketplace isremarkable. There is more than a terabyte of data produced by theoptions marketplace in two weeks. Given that this is only going toincrease, it begs the question of capacity.
Again, there was the distinction made between the equities and optionsmarketplaces. First, there is the number of exchanges, with therebeing seven options exchanges as of this writing, with two more to comethis year. Secondly, the number of listed options is 20:1 to equities.As options are a derivative of the underlying, the number of strikes,calls, puts, in, at, and out-of the money quotes is immense.
With the imminent options symbology changeover, the question was raisedas to how it will affect best execution. Will a standardized symbologyassist in measuring quality in the marketplace?
Alan Shapiro believes that standardized data will streamline how datais matched, as some firms currently use different symbologyinternally. Chris Nagy believes that it will not impact retail bestexecution, but will positively affect customer experience. Ultimately, thewhole panel agreed that it will benefit the industry.
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