Equity and commodity ETF options: Trading strategies are building a deep market

In Europe, equity and commodity ETF options markets have successfully built a depth of book supported by proxy trading, and a change in regulation that has driven UCITS investors away from using US products and towards European markets. Using calls and puts on low yield or even non-yielding assets such as gold, is helping investors to realise greater alpha via the options markets.

Gabriel Manceau, Equity Derivatives Trader at Morgan Stanley and Matthew Riley, Buyside Equity & Index Sales at Eurex, talk through the size of market today, strategies that are allowing traders and investors to use ETFs and ETF options to see better returns, and the future for trading in this asset class in 2021 including an expansion of interdealer trading.