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

Market Matters is an online investment and share trading advisory service designed for those that want to take their wealth further. We specialise in advice for active share market investors, including those new to the markets or those with a Self...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment