Panel Discussion? -? New Directions: Volatility, Risk & Market Structure
U.S. equity options exchange leaders give an update on the state of the equity options industry and share their thoughts on risk management and market structure changes currently being considered.
Chair:
Richard Repetto, Principal, Sandler O’Neill & Partners
Speakers:
Shelly Brown, Senior Vice President, Strategic Planning & Operations, MIAX Options
Steven Crutchfield, Executive Vice President, Head of Options, ETPs, & Bonds, NYSE
Lisa Fall, President, BOX Options Exchange
Jeromee Johnson, Vice President, Market Development, BATS Options
Gary Katz, President & Chief Executive Officer, International Securities Exchange
Edward Provost, President & Chief Operating Officer, Chicago Board Options Exchange
Thomas Wittman, Executive Vice President & Global Head of Equities, NASDAQ OMX
Highlights:
- Ist 8 months of 2014 were characterized by low volume and very low volatility
- That all changed in September, October. VIX peaked at 31 in October but systems managed normally
- Whether options exchanges realize it or not they are synthetically long volatility
- Volume for 2015 is expected to grow in the low single digits
- Open Interest is growing, just hit all time high, finally surpassing 2007 levels
- There is a risk of system strain, particularly in the OCC. While there are perhaps 10,000 individual equities listed there are currently 751,000 individual option series listed and the number is growing
- Very likely that new option exchanges will open in next 2-4 years