Study: Strong European demand for U.S. options

The following is from the OIC...

CHICAGO - September 6, 2011 - The Options Industry Council (OIC) today presented the results of the study, European Demand for U.S. Listed Equity Options, conducted by Tabb Group and commissioned by OIC. The study found that 10 percent of U.S. listed options volume originates from Europe today, and this amount is likely to increase as a result of global regulatory efforts to reduce risk.

The Tabb Group also found that European investors believe U.S. listed options markets are liquid, transparent and deliver unparalleled execution quality. Tabb expects continued demand for U.S. options from European institutional investors because of their broad exposure to U.S. equities. European holdings of U.S. equity-related securities total $1.3 trillion, equal to 46 percent of total foreign ownership of U.S. equities.

There are, however, barriers to the trading of U.S. listed options in Europe, including unfamiliarity with the trading process and U.S. options market structure. This presents a challenge and opportunity for OIC in its mission to educate investors in the responsible use of equity options.

To access OIC’s summary and the full study (registration required), visit: www.OptionsEducation.org/tabb.

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