EFFECT of ZERO DAY OPTIONS (PART DEUX) My post last week generated some off-line heat, specifically my claim that zero day options' introduction has affected retail order flow as well as "professional" order patterns. Watershed technology powers the stock option ATS at Wall Street Access. Below is a snapshot comparison of the distribution only of retail orders that transited the ATS on August 4th compared to December 8th. A more exhaustive study can certainly be conducted, but the random sample shows a distinct trend in retail orders. The change is remarkable even since last summer; this is not just a professional pattern. Come visit us at watershedtech.us and see what we're up to.
Watershed Tech
Financial Services
Chicago, IL 140 followers
Watershed Technologies: Driving Derivative Execution Evolution
About us
Our Mission: Improve efficiency in options transactions executed on international trading floors, electronic marketplaces, and financial exchanges by leveraging natural trading flows. Watershed’s proprietary technology connects buyers and sellers without reliance on current fee-taking, antiquated systems. Watershed Technologies Platform Increases Speed to Market Lowers Transaction Costs Improves Execution Pricing Returns Value to Market Participants Increases Performance Transparency Is MiFID II and CAT Compliant
- Website
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http://watershedtech.us
External link for Watershed Tech
- Industry
- Financial Services
- Company size
- 2-10 employees
- Headquarters
- Chicago, IL
- Type
- Privately Held
- Founded
- 2020
Locations
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Primary
Get directions
55 E. Monroe
3800
Chicago, IL 60603, US
Employees at Watershed Tech
Updates
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EFFECT of ZERO DAY OPTIONS Watershed technology powers the stock option ATS at Wall Street Access. We are able to see trends in market behavior. The industry continues to discuss the impact of zero day options' introduction. The profound difference in the distribution of order duration is obvious. The distribution on the left is for the fall of 2023, and the distribution to the right is from the second half of 2022. An important data point is the growing presence of retail orders in the ATS which combines with the shift forward in order duration. The trend is not driven purely by "professionals." World class liquidity competes openly in the ATS for customer orders and drives better trade prices as the industry continues to evolve. Come visit watershedtech.us and see what we're up to.
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