Options Insider Radio Interview with the Head of BATS Options
Here is a preview ofan upcoming Options Insider Radio episode featuring Jeromee Johnson, Headof BATS Options, recorded at the 2010 OIC Conference.
OptionsInsider: As you were launching anew exchange, there was a lot of talk about if there was a need foranother exchange. What is the BATS Options response?
Jeromee:””Even being new, there are other options exchanges coming. We believethere is still phenomenal opportunity still available in the market.
Thereason for the creation of BATS Options is that the owners wereinterested in a technology leader, an exchange that can drive costs downfor all participants.””
OptionsInsider: How many classes isBATS Options currently trading?
Jeromee: “”We are stillrelatively early in the rollout, and have recently added classesrepresenting approximately one-third of the classes we intend to list. There will be two more big waves of rollouts representing the othertwo-thirds between now and the end of May.””
Options Insider: Did the launch go as expected? Were thereany hiccups ?
Jeromee: “”I?m very happy with how things aregoing. There were minor technology challenges in the beginning in themarket data side that were quickly resolved. The timing of the launchwas deliberate to coincide with the new symbology initiative, so we havebeen able to take advantage of that consolidation.””
Options Insider: Even though BATS Options is new, how are thevolume numbers so far?
Jeromee: “”The numbers are right inline with our expectations. Our best day so far was April 16, the daythe SEC levied fraud charges against Goldman Sachs. While that was ahuge day for the market overall, BATS Options traded just under 1/2%, orapproximately 120,000 contracts. On a normal day, we are doing between30,000 and 50,000 contracts per day. Going into June, after the fullrollout, we expect to be at approximately 1%.””
Options Insider: And ultimately, what market share does BATSOptions want to achieve?
Jeromee: “”The first goal is tobreak even on profitability. If we can get to the same market share asBOX (~5%), that will be the break-even point for BATS Options. Nextyear, we anticipate having a market share of 3 to 5%. In the long-term,the goal is to have an options market share in the same range as thatof our equity market share. “”
To hear more, tune into Options Insider Radio.The Options Insider’s exclusive audio coverage of OIC 2010, includingpanel audio, will be available after the conclusion of the conference.
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