On Thursday, the Options Industry Council (OIC) presented the results of the study, ?Shifting Demand in a Changing Market Landscape.? This was conducted by TABB Group and commissioned by OIC.
The study disclosed that European investors remain interested in using U.S. options while becoming more sophisticated. This has been illustrated by an expanding use of directional and volatility strategies as well as an increasing use of sector ETFs and options on single stocks.
From the TABB Group study, its findings also show that?European investors remain an important source of demand for U.S. listed options, with significant U.S. equity holdings driving demand for premium and hedging strategies. According to OIC’s press release, one key finding shows private wealth managers have expanded their use of U.S. listed options, as electronic access and rising client assets under management are driving increased adoption.
As U.S. demand grew in 2013, the overall proportion of flow from Europe declined marginally, but TABB?s research identified rising interest from a broad range of European investors.
This TABB study is now the fourth one commissioned by OIC regarding European participation in U.S. options markets.? Previous studies had been conducted in 2006, 2011 and 2013.
Here’s the full study.?