Optiver, a top market maker in S&P derivatives, welcomes CME’s move to make options on its flagship E-mini S&P 500 futures contracts eligible for block trading. Block trading combines the benefits of direct liquidity sourcing with electronic execution to provide end users with the ability to transact during an extended 23-hour trading day. This move will broaden market access for institutional users, boost liquidity and strengthen market structure.
Effective 6 June, Chicago Mercantile Exchange Inc. (CME) is set to introduce changes that include expanding the listing schedule of E-mini Standard and Poor’s 500 Stock Price Index Futures contracts and related options contracts for trading on the CME Globex electronic trading platform and for submission for clearing via CME ClearPort. From that date, CME will permit block trading in all options on E-mini Standard and Poor’s 500 Stock Price Index Futures contracts.
“Market participants need real-time price discovery and access to liquidity at all times, so they can manage and hedge their risks. Optiver always supports developments that ensure the market is fair, stable, liquid and transparent, and enable participants to transact whenever, wherever and however they choose,” says Optiver US CEO Rutger Brinkhuis.
“For institutional parties who wish to transact large orders at speed, block trading is an effective mechanism. Globally Optiver is committed to providing pricing for institutional parties via this new enhancement. The CME change will increase liquidity during global trading hours as counterparties all over the world have access to E-mini S&P 500 futures and options at any time of day. This will create a more robust market structure.”
