CBOE Holdings is expected to acquire Bats Global Markets, revealing the financial industry’s growing outlook in exchange traded fund options trading.
Ed Tilly, chief executive of CBOE, argued that the new combined efforts of CBOE Holdings and Bats Global Markets would create the best opportunity to take advantage of a rapidly shifting market demand for structured products, reports Philip Stafford for the Financial Times.
ETFs with options contracts that trade on multiple exchanges was “the fastest-growing, really the only growing” part of the options market, Tilly told the Financial Times.
As the ETF universe continues to grow and traders from the average retail to institutional side adopt the investment vehicle, options on ETFs are quickly becoming a growing segment of the market.
“Options on ETFs would logically grow because ETFs are becoming such a big part of the US equity market,” Chris Concannon, Chief Executive Officer of Bats Global Markets, told FT.