Option trading doesn’t lend itself (yet) to any of the existing electronic trading platforms. Market makers continue to find it to their benefit to gather each day in the trading ring as a central focus for providing quotations for those seeking to do business in options. The majority of sizable transactions involve structured deals with futures, or against a series of other options, in ratios, etc… to obtain delta neutrality, or fit their particular needs.

However, it is growing increasingly obvious that the smaller boutique markets, which include most of the soft markets, will be moving towards an over-the-counter style of trading.  Whether because of expenses of maintaining staff, and booths and such, or because volumes and fees continue to drop, or pehaps a combination of the two, more and more brkerage and trading opperations are leaving what’s left of the trading floor.

This entry was posted on Monday, September 14th, 2009 at 11:17 am and is filed under Softs. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.