How will local companies be affected by significant falling equities turnover

Nicholas Forsyth

Market Matters

How will local companies be affected by significant falling equities turnover? Global MarketMaker, Optiver announced it will no longer make markets on the ASX, dealing another blow to the local exchange. This can only have a negative impact on the option liquidity locally, which has already experienced a 20% decline over the fiscal-year. Market participants have a number of explanations for the recent demise of option turnover and while I believe some may be self-inflicted, the major issue is surely the collapse in option volatility, caused by mass by economic stimulus from the world's Central Banks - this will not last forever. See (VIEW LINK) for the full report and the three stocks where profitability is significantly influenced by markets activity & turnover.


Nicholas Forsyth
Nicholas Forsyth
Director
Market Matters

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