Tag Archives: options market

The Survey Says: As Options Market Liquidity Wanes, Top Buyside Managers Say This About Sell-Side Service Providers:

MarketsMuse.com Options market update focuses on recent industry report canvassing the perch of buyside managers perspective as to the good, the bad and the ugly sell-side broker elements they encounter in the course of increasing use of listed options products is courtesy of recent report issued by industry think tank, TABB Group.

Not surprisingly, buy-side managers canvassed in this study (including traditional managers and hedge fund managers) found that execution quality is paramount, particularly as market structure evolves and fragmentation rises, more important, the fact that liquidity from traditional ‘capital commitment’ desks–and the ease in which an institutional customer can execute “on the wire” is diminishing for all but most favored-clients.

The TABB study provides further insight as to which option products are of the greatest use to managers, the importance of algos vs. the importance of research and the most important ‘value-adds’ that sell-side brokers can contribute.

marketsmuse options tabb forum mar 2015
Option Products Of Greatest Interest to Buyside

Continue reading

Options Mart Innovation: Now a 20-Minute Contract

What will they think of next? Is trading options with a weekly expiration too long? According to latest news, the newest binary option contract from Nadex, the 20 minute option, might suit some traders’ needs.

The North American Derivatives Exchange (Nadex), a regulated online binary options exchange in the U.S. announced the launch of 20-minute binary options contracts earlier this week.

The new contracts are geared at retail traders who have a short-term speculative focus and want to get involved in the options market. The new 20-minute binary contracts will be listed between the hours of 9:40am and 4pm EST, Monday through Friday and are available on the top U.S. Index products.
Prior to the launch, Nadex options have had hourly, daily and weekly expiration time. Prior to the launch, Nadex options have had hourly, daily and weekly expiration times. Nadex’s new binary contracts will have durations of 20 minutes, with expirations on the hour, at 20 minutes after the hour and 40 minutes after the hour

In just one week, options contracts with an expiration of 20 minutes have become the second most popular offering on trading platform Nadex, as retail investors seek faster and faster gratification. Continue reading