NYSE Options Executive Discusses Industry Growth, Technology Advancements, and Global Expansion

Jul 1, 2024

John Lothian

John Lothian

Executive Chairman and CEO

Asheville, NC (JLN) – In a recent interview at the Options Industry Conference in Asheville, NC, Meaghan Dugan, head of NYSE Options, shared insights on the evolving landscape of the options industry and the exchange’s technological advancements.

Dugan highlighted the significant growth in the options market, particularly in short-dated instruments. The options industry has seen a surge in new listings, especially in the short-dated space, she said, pointing to the introduction of Wednesday options as a tradable instrument in the US options market.

The NYSE has made substantial technological improvements with the rollout of its Pillar trading system. Dugan emphasized the system’s efficiency, stating, “We’ve seen a two-thirds reduction in latency compared to the previous platform, which has translated into a 150 basis point increase in market share on average.”

When asked about potential discussions with SEC Chairman Gary Gensler, Dugan stressed the importance of maintaining the strength and transparency of US equity and options markets. She advocated for a cautious approach to regulatory changes, saying, “We need to look at these things more broadly because our members and our markets are very transparent and efficient today.”

Addressing the rise of zero-day-to-expiry (0DTE) options trading, Dugan noted a significant shift in trading patterns. “Over 50% of the volume in SPY and QQQ options is now in individual daily strikes and series,” she said. While not overly concerned about strike listings, Dugan expressed some worry about the increasing quote traffic and its potential impact on market stability.

Regarding the potential approval of Bitcoin ETF options, Dugan revealed that NYSE has filed with the SEC to list such options. “We think from the market standpoint that will be a very positive move,” she said, indicating growing interest in cryptocurrency-related financial products.

Dugan also highlighted increasing global interest in US options markets, particularly from the UK, Europe, Asia, and Latin America. “We’re proactively getting out there and talking about US options market structure across the globe,” she said, emphasizing the need for continued education to new market entrants.

 

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