​Derivaguard’s Dale: Broadening The Base

Over the last 40 years, the equity derivatives market has grown enormously. In almost any metric used, volume, products/underlying’s listed, option exchange venues, even increased trading hours. Almost all of these developments could be viewed as potentially aiding the traditional end user customer. Some of these include increased access through competitive exchange platforms, higher liquidity for better pricing and the lowering of fees. This growth, however robust, lacks clarity in one key aspect. Is this increase in volume a reflection of ever-greater activity of professional derivative traders, or is the base actually broadening with higher participation rates from new customer end users?