Wall Street & The Options Market - Part Three
...Continued From: Part Two
Q: DO YOU EXPECT MULTINATIONAL EXPANSION OR CONSOLIDATION IN THE OPTIONS MARKET? - CTD.
- "Within a year, we believe PHLX, BOX and CBOE will be owned by someone else," said Brendan Caldwell, President and Chief Executive Officer, Caldwell Investment.
- "The global land grab that is occurring right now is tremendous," said Brad Bailey, Senior Research Analyst of Aite Group. "Weíre looking for exchanges to leverage that land grab across products and across borders. I wouldnít be surprised to see names outside the options world, especially from the futures market, coming in and making deals in the options space."
Q: WHAT IS THE MOST SIGNIFICANT NEW DEVELOPMENT IN THE OPTIONS MARKET?
- "Portfolio margining seems to be helping the options market on the retail side," said Michael Ryan, Head of Wealth Management Research at UBS. "Unfortunately, on the product side, itís difficult to come up with new products in the options market due to regulatory issues. New product development is much easier on the futures side."
- "Simplification seems to be the major trend right now for the retail side of the business," said Richard Repetto, Partner, Sandler O'Neill & Partners. "The online options brokers are really trying to simplify the options instrument for newcomers to this marketplace."
- "I don't know about new developments in the options market," said Caldwell. "However, there still is a problem with OTC vs. listed options. It still makes more sense to do large options transactions in the OTC market than it does on the exchanges. That's a significant hurdle that the options industry needs to overcome."
...To Be Continued In: "Part Four"
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