After stories of options volume falling last year, in a new piece by Markets Media, “Options Volumes Stabilize,” it sees from the current landscape, options trading volume will increase which may ease a capacity oversupply.?
This will come from a few factors.
- 2013 average?daily options volumes have been estimated to reach 17 million, according to the International Securities Exchange (ISE). This follows 2012’s volume decline to?16 million from ?2011’s record year at 18 million.?
- The rising number of?U.S. options exchanges will hit 12 by the end of the year. The newest entrant will be ISE’s second options exchange, Topaz, in the second quarter.
- Market makers will invest more in IT systems and use automated, high-frequency trading systems for 94% of their total 2013 activity, according to Tabb Group.
- Options exchanges will use complicated pricing structures to gain order flow.
- Corporate and public pensions are exploring risk management opportunities.For public pensions, they will go in-house for asset management.?
- Possible growth opportunities may include exchange complex order books (COBs), weekly options and volatility products, as noted by Tabb.