Goldman Retreats From Options as Stock Derivatives Trading Struggles

An interesting consequence of sustained levels of low stock market volatility (to wit, VIX has been trading in the 9’s for most of the fall semester; a range that falls easily within the lower part of the bottom decile) is an apparent waning interest in trading exchange-traded stock options. No wonder CME is launching a futures contract based upon bitcoin (see http://www.cmegroup.com/…/cme_group_announceslaunchofbitco…/)!

Waning stock volatility is pressuring the equity derivatives business, suppressing revenue and driving traders out of what was once a key Wall Street moneymaker.

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