The options market continues to be a criminally under-followed topic in 2021. Options PFOF is bigger than equities PFOF. Options notional volumes have surpassed equities. And yet NO ONE talks about how the plumbing actually works. Let's fix that. OPTIONS MARKET STRUCTURE 101:
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In fact you would think that standard market segmentation arguments would make options trades even cheaper than equity trades.
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Options biz has more complexity to warehousing risk and managing a book, not to mention capital requirements. Where as equites it’s more straightforward.
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