Optiver leaves ASX, local trading

[skc]

From this morning's AFR

The Australian Securities Exchange has been dealt a fresh blow, with global market-making giant Optiver deciding to cease trading on the local bourse in a move that threatens to reduce liquidity in the equity options market.

http://www.afr.com/p/business/companies/optiver_leaves_asx_local_trading_4Lwgl0Q7hcEZmHIW3JkLrM

How will this affect option traders?

 

[nulla nulla]

From this morning's AFR



http://www.afr.com/p/business/companies/optiver_leaves_asx_local_trading_4Lwgl0Q7hcEZmHIW3JkLrM

How will this affect option traders?

One less robot?

 

[skc]

One less robot?

They are market makers... without them there'd be much less liquidity in the options market.

 

[pixel]

They are market makers... without them there'd be much less liquidity in the options market.

That could also mean a lot fewer "surprises" around option expiry dates...

 

[skyQuake]

Probably because they couldn't stay competitive.

The court battle with Tibra for 7 years or so was settled earlier this year with cash payout from Tibra and no admission of guilt. Which means Tibra is still stealing their lunch money, but gave a little back when the teacher found out.

 

[investortom]

Not good news! we need more competition not less...

 

[sails]

From this morning's AFR



http://www.afr.com/p/business/companies/optiver_leaves_asx_local_trading_4Lwgl0Q7hcEZmHIW3JkLrM

How will this affect option traders?

Thanks for posting that, skc. I mainly trade XJO options which still have several other MMs. It looks like the less liquid stock options could be more difficult trade without Optiver.

Here's an ASX PDF with the list of current market makers: http://www.asx.com.au/documents/products/ASX_ETO_MM_Fact_Sheet.pdf

 

[minwa]

I have a friend who works at Optiver and they've been migrating to other markets for a long time now so it's a gradual decrease, probably won't be "felt" at the sudden lack of liquidity.