Quantitative trading firms that dominate the US options market are expanding into Europe.
Market makers' trading volume in the European market is constantly expanding. In 2022, it is estimated that 30% of the outstanding contracts for Euro Stoxx 50 index options listed on European futures exchanges come from market makers, and this percentage is still growing. These market makers are actively expanding their direct customer services to capture a larger share of the European over-the-counter trading volume. So far this year, they have claimed two of the top three positions in terms of volume on European futures exchanges. The rise of professional market makers is beneficial to investors overall, as it will drive more competitive pricing for various asset classes and compel banks to enhance their own competitiveness by focusing on their specific areas of expertise.
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