Just one market maker signed for quoting options on Brunel and Ten Cate, looks like All Options needs some brownie points at Euronext.

Ik ben er echt heel blij mee, echt

Two is company, three is a crowd. Probably some deep truth in this saying, but one thing is for sure : one is definitely not a crowd. Euronext is launching new option classes often. The market makers will quote all the stuff and guarantee a tight market – those firms take the real risk.

Only one market maker

Euronext wasn’t able to find more than just one liquidity provider for the new options on Brunel (BI) and Ten Cate (TCT) – only All Options subscribed for the role of quoting these options. None of the other firms showed any interest at all in the quoting obligations. One market maker is not a crowd, and the liquidity provider auction doesn’t look very healthy this way.

Not logical

There’s something strange here. There isn’t much money to be made in Brunel and Ten Cate options, and still All Options takes on the quoting responsibility. The firm has seriously axed their trading staff, and won’t have many traders left with the time to quote this deserted options. Second, All Options didn’t sign up for the introduction of the options on AEX component Aperam – which is mainly quoted by Caerus Trading, along with a little 323 and Nino. It doesn’t make sense to sign up for Brunel and skip Aperam.

All Options short on brownie points

Apparently Euronext is able to pull a few strings and make All Options sign up for liquidity provider whenever the exchange needs it. Wasn’t necessary in Aperam, but in Brunel and Ten Cate the exchange would have lost its face. My bet is All Options is a little short on brownie points at Beursplein 5, and shows up as the cavalry when Euronext needs it.

Jack
Jack