Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. By introducing extended trading hours ETH , the CBOE seeks to provide overseas investors with the opportunity to efficiently gain exposure both to the U. The extended session works quite differently than the regular session. The extended and regular sessions operate differently.
The ETH is an all-electronic trading environment, while regular trading hours is a hybrid electronic-open outcry market. Matching protocols vary depending upon the option contract. We have concerns over the amount of liquidity and the potential for clients to be exposed to predatory behavior in the extended trading hours.
These are the same concerns that we have in U. For example, we do not offer pegging algorithms in the U. In the ETH, until liquidity picks up and our Execution Consultants and Quantitative Research Groups understands the behavior of liquidity and electronic interaction, we only offer limit orders capabilities. Clients will be able to place passive orders and aggressive sweeps through their limit price. Options involve risk and are not suitable for all investors.
This post is written for educational and discussion purposes for qualified institutional investors only. You must speak with an Execution Consultant about how to use options and execution algos to aggregate stock liquidity, and to determine if options and this strategy are right for you, your firm and your investment goals.
The options risk disclosure document can be accessed at the following web address: Please ensure that you have read and understood it before entering into any options transactions. How Can You Respond to the U. Greg Bender is a derivatives execution consultant for Bloomberg Tradebook. He is based in New York and responsible for the coverage of buy-side and sell-side clients globally that trade the listed derivatives markets.
With over 15 years of trading experience as an option specialist on the American Stock Exchange with Goldman Sachs and its subsidiaries, John is uniquely qualified to help clients conceive, implement and analyze simple and complex hedging and speculative equity derivative trading strategies. He also has an extensive network of relationships with option, equity and ETF liquidity providers that allows him to create efficient and superior order execution.
Gary Stone has been with Bloomberg since As Chief Strategy Officer, he is responsible for the discovery of innovative and unique products and forming strategic relationships for Tradebook. In he was named one of the top most influential professionals in the capital markets by The Trade magazine. Facebook Twitter LinkedIn Instagram. Bloomberg Tradebook March 30, For more posts about changes in the Options Market:More...