This chart got me thinking - what's the impact to exchanges themselves? Who wins from this?
The short answer - Nasdaq $NDAQ.
More below: https://t.co/r376jqjTon
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Other than the Q1/Q2 chaos, combined options revenue has outpaced cash equity revenue for the top 3 exchanges. Equities are fragmented w/more competition, and the top 3 control more % of the options market:pic.twitter.com/2LTPKAB5nE
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When it comes to equities revenue share, NYSE is in 1st place but
$NDAQ yields more per trade.$CBOE is the cheapest of the trio.pic.twitter.com/N2Eh2qURLN
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This is pretty crazy -
$NDAQ yields 75 - 100% more in options revenue than its next 2 competitors. NYSE does less volume, but$CBOE share is on par with Nasdaq.$NDAQ's customer mix is higher quality, hence the much higher revenue capture:pic.twitter.com/yNNNd2mmTc
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Nasdaq has dominant market share in options with huge revenue capture from that market. As options grow in size & impact to the total market,
$NDAQ is in the best position to benefit.2 replies 1 retweet 4 likesShow this thread -
Replying to @HideNotSlide
Seems to me that CBOE is positioned equally well or better... Similar mkt share, but I estimate higher avg RPC on CBOE's options from their exclusivity on index products. Assuming continued growth in S&P/Vix derivatives, why wouldn't they benefit at least equally? Thoughts?
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I think about their index options business separately from cash options. Different drivers of growth: Cash biz: $0 commissions, stimulus checks, Robinhooders, etc Index biz: AUM in ETFs that track the VIX, healthier vol
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