Andy Nybo from Tabb Group delivered a presentation and then headed a panel discussion on The Evolution of Options and Futures Strategies on the Buyside Trading Desk at CBOE’s RMC Conference Wednesday. The panelists that followed Nybo’s presentation were:
- Jared Dubin, Head of Systematic Strategy Research, LMR Partners
- John Fennell, Executive Vice President, Financial Risk Management, The Options Clearing Corporation
- Patrick A. Luongo, head of AES Options Sales, Credit Suisse
- Alex Orus, Founder and Partner, Principalium Capital AG
The presentation portion of the session discussed trends in the markets focusing on three areas. First, it was noted that global regulatory pressure to reduce systemic risk is moving demand to exchange traded products. For instance, an aggressive trading strategy may be forced to use listed markets as brokers restrain credit. Second, listed broad based equity index derivatives are becoming a bigger part of investment strategies. With the expansion of investment mandates has resulted in a wider use of index derivatives and increased volatility will reinforce any demand for risk management activities. A final point that was made noted that market participants are drawn to markets that have efficient liquidity when entering or exiting positions, especially at times when volatility surges.
This presentation also took advantage of CBOE’s dive into live polling at RMC. The first question gauged the interest of attendees with respect to access to VIX Futures during non-US trading hours.
The audience was probably skewed, but 87% of respondents found it desirable for traders to have access to VIX futures during the extended hours session.
The second question was about SPX and VIX option trading during non-US hours.
The response to this second question was very similar to the first with 85% of responses in the Moderate or Very category. Part of me wondered if both of these surveys would have seen more responses on the “Very” category if we had asked the questions just after the market reaction to Brexit this past Summer.