A little volatility is a good thing, a lot not so much. Recent volatility has created significant challenges for participants in the global securities markets and as always there have been winners and losers that either by design or happenstance are on the right side of the trade. But who really benefits from volatility? It’s not Joe and Jane Mainstreet, that’s for sure. It’s the professional trading accounts, the brokers and of course the market makers that are willing to catch a falling knife when the proverbial cow dung hits the fan.

But who are the biggest players poised to see benefits? Our recent report, The Landscape for Listed Volatility Trading: Industry Perspectives sheds light on who will benefit, at least from the views of professional market participants whose job is to keep the market running. Last year, Burton-Taylor interviewed 29 U.S. listed option market participants who have front seats in the volatility theater, asking them questions around the volatility landscape and who they thought were the biggest participants in the volatility trading landscape.

One of the questions we asked centered on who our interviewees thought were the biggest banks, market makers and brokers in the volatility trading landscape. The chart below provides a look into who our participants believe are the biggest global banks and their respective position in volatility market. Next week, I’ll share perspective on the biggest market makers in the volatility space, as well as a few more key findings from the study.

Our report, The Landscape for Listed Volatility Trading: Industry Perspectives is based on more than 100 interviews with market makers, global banks, exchanges, and institutional investors active in global volatility markets and provides first-hand perspectives on their views of the volatility trading landscape. The report focuses on the leading market participants, investor demand, challenges and opportunities for the Cboe VIX complex, and the prospects for MIAX SPIKES options and futures. For more information on the report please click here.

Andy Nybo is Managing Director at Burton-Taylor International Consulting, part of TP ICAP group, where he is responsible for managing all operations and business activities of the company. He has more than 30 years of experience in research and technology applications in global securities markets.  

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