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Chart 1 : Equity Options Equity Options Market Landscape Market Landscape – Europe – vs Europe US vs U . S .
Notional Value Traded ( USD )
Billions
$ 180,000 $ 160,000 $ 140,000 $ 120,000 $ 100,000 $ 80,000 $ 60,000 $ 40,000 $ 20,000
$ 0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
EU – Single Stock + ETF EU – Stock Index US – Single Stock + ETF US – Stock Index
GDP 2018 :
U . S .
$ 20.5 trillion
Europe
$ 18.8 trillion spoken to a number of frustrated systematic and quantitative hedge funds which look at Europe and say , for national index options in particular , it is nowhere near as liquid a market as it could be if the market structure was addressed .
Can you provide more details about the market model you will be using ? AC : We believe we have a better solution built upon the on-exchange market model adopted in Cboe ’ s US derivatives market . We are introducing a transparent , lit , quote-driven market designed to attract a diverse range of market participants , including retail and institutional investors . We have also designed our market from a pan-European point-of-view , enabling market participants to
“ We have spoken to a number of frustrated systematic and quantitative hedge funds which look at Europe and say , for national index options in particular , it is nowhere near as liquid a market as it could be if the market structure was addressed ”
access a modern derivatives market through a single access point , creating efficiencies in trading and clearing .
On the product design front , we expect to offer uniform contracts to create efficiencies for customers . Our goal is to encourage deep pools of liquidity through homogenous products ; all constructed the same
ADE CORDELL , PRESIDENT , CBOE NL
way . We ’ ve developed right-sized index contracts with appropriately calibrated tick sizes for index futures and options contracts .
How has the build out been progressing and has COVID-19 disrupted your plans ? DH : We have been making very good progress on the regulato-
16 // TheTRADE // Fall 2020