U.S. Equity Derivatives: Electronic Trading a Tough Sell

Electronic trading of derivatives has grown considerably through the past decade, but investor interest has been lackluster at best.

Despite having the U.S. equity options market having 12 fully electronic exchanges, three-quarters of of client trades are still done the old-fashioned way. And while fixed-income and FX derivatives are moving toward a more exchange-like environment, investors are increasingly turning back to the OTC market to get their equity options trades executed.

This report provides detailed information on equity derivatives investing according to investors located in North America. Research is based on in-person and telephone interviews with 152 portfolio managers and 197 traders between May and June 2014.