Competition among nine U.S. options exchanges following regulatory changes aimed at saving money for investors is causing some of the biggest participants to reduce their trading, a Tabb Group LLC report said.
Dealerweb , the inter-dealer broker owned by Wall Street’s largest banks that took a type of mortgage trading away from ICAP Plc last year, plans to offer electronic trading of U.S. Treasury bills within two months.
Increasing use of options by asset managers may help boost U.S. equity derivatives volume about 8 percent to 4.2 billion contracts this year for a ninth straight annual record, according to research firm Tabb Group LLC.
Instinet Inc. has begun using its dark pool, or private trading venue that helps investors buy or sell large blocks of securities, to help transact U.S. options orders for institutional clients such as mutual funds.
U.S. options trading rose 33 percent in November from a year earlier, the biggest gain since December, as investors turning to the market amid wider stock swings drove volume toward an eighth straight annual record.
The International Securities Exchange, operator of the biggest all-electronic options market in the U.S., won a 20-month fight against rivals with trading floors, convincing regulators to allow certain block trades without requiring them to be shown to other traders.