Euronext.Liffe slashes prices for equity option trading

The price cuts, which will be available for trades in London, Amsterdam, Paris and Brussels, will amount to around 25% on an average transaction.

Fraser Cowie, executive director of marketing at Euronext.Liffe, said the reductions in operating costs provided by the firm's electronic trading platform have allowed it to cut its fees.

Currently, 70% of equity options trading is over-the-counter. Cowie believes 80% of this is in vanilla products that could easily be done through an exchange.

He said the introduction of the Basel II capital Accord, which will require banks to book regulatory capital when doing OTC trades, would make exchange-traded options more attractive.

But the head of equity derivatives at a leading European investment bank was dubious about how much extra business the exchange could generate. “Exchange fees in Europe are the highest in the world," he said. "What the OTC derivatives market really needs is a clearing and confirmation service, which can generate cost and time savings to the traders.”

The London Stock Exchange, via its EDX platform, and the Depository Trust and Clearing Corporation are both launching an equity derivatives matching service to meet this demand.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Next-generation technologies and the future of trading

At a webinar in association with capital markets technology provider Numerix, panellists discuss the potential for increased adoption of the public cloud to boost investment performance, its impact on risk management and overcoming barriers to…

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here