www.bloomberg.com
The US options market is booming, nearing its sixth consecutive year of record volume. However, this success is raising concerns. Industry leaders are worried about the market’s increasing dependence on a limited number of banks to guarantee trades for major market makers. This concentration of risk could potentially destabilize the market if one of these banks faces financial difficulties or withdraws from the options clearing business. Diversifying guarantor participation is seen as crucial for long-term stability.
