In the last issue, FO Week spoke to Euronext Liffe about its plans in the European equity options market. Now, Ralf Dreyer, head of section, product design equity derivatives at Liffe's main competitor in this market, Eurex, puts his exchange's side of the story. Elliott Aykroyd asked him how Eurex is trying to keep competitive with both Liffe and OTC markets in a growing market
What is it about the equity options market in Europe
which you believe makes it suitable for trading through
In general, very mature and efficient cash markets and a
clear, transparent and reliable legal environment. A big bunch
of the equity options in the OTC market are exchange
look-alikes, and [there is] an increased sensibility for
counterparty risk with the requirements of Basel II.
Most equity options business remains OTC; what
advantages can exchange traded equity options offer versus the
OTC equivalent that makes you think that they can claim market
We believe that there is a symbiotic relationship between
the on exchange and OTC markets and that supporting both
markets allows us to offer our customers the most benefits and
risk management opportunities. We believe that our offering
eliminates counterparty risk for market participants,
contributes to the overall stability of the market and further
enhances the attractiveness of our on exchange
This article is available exclusively to subscribers
Please log in to continue reading.
Not yet a subscriber?
Click here to take a free trial.
Already have an account? |
Please fill in your details below and a customer service representative will contact you.