Trading volumes of exotic and vanilla equity options remained highly correlated related in 2009, according to derivatives pricing provider SuperDerivatives.
Throughout the first half of last year, the trading of exotic and vanilla equity options by banks, funds and corporates was volatile but resilient, before falling off sharply in June. The close relationship between the two appears to contradict reports of a back-to-basics trend in equity derivatives in 2009.
The similar levels of trading act
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