European investors remain an important source of demand for U.S. exchange-listed options, with order flow from Europe accounting for an estimated 9% of trading, relatively unchanged from 2013.
Burton-Taylor conducted interviews with U.S. and European market participants from firms that provide services for U.S. listed options trading. Responses from the interviews are presented within the report and are supplemented with industry statistics and Burton-Taylor estimates. The analysis defines European trading of U.S. listed options as a trade executed by a firm domiciled in the U.K. or continental Europe. This detailed report features the top trading strategies European investors use with U.S. listed options, such as income generation, capital appreciation, and volatility strategies. The report also identifies the challenges investors face trading U.S. options.