Traders Are Fleeing the Options Market


Traders Are Fleeing the Options Market
Tuesday, 09 May 2017

http://www.en.netralnews.com/news/business/read/5420/traders.are.fleeing.the.options.market

The stresses prompted at least six prominent options market makers to exit from the business since 2012. Market makers are firms willing to both buy and sell using automated programs.

Thomas Peterffy, a pioneer of electronic options trading, said in March that his firm, Interactive Brokers Group Inc., would pull the plug on options market making.

KCG Holdings announced its exit from retail options market making last year, while UBS AG and Credit Suisse Group AG have also left automated options market making. J.P. Morgan Chase & Co. and Bank of America Corp. made similar decisions in 2014, according to people familiar with the matter.
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I was going to post this as well. We are going to be left with a few huge firms making markets. The technology and capital that is now required to make markets profitably is huge. Along with very high costs that exclude individuals and smaller firms.
 
FSU said:
I was going to post this as well. We are going to be left with a few huge firms making markets. The technology and capital that is now required to make markets profitably is huge. Along with very high costs that exclude individuals and smaller firms.
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Next step: total and complete capture.
 
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