9:25 PM
admin
How scared were mom-and-pop investors this week when they couldn’t trade the fear gauge? Not really scared at all.
Brett Marcus, a managing director of equity derivatives at Stifel Financial sa SF -1.49%id less than 10 clients called the company Thursday about the CBOE system outage.
The customers who did call, he said, were more concerned that the technology issue came only a few days after a false tweet from the Associated Press’ Twitter accountbriefly jolted the stock market.
Coming so soon after that hoax, “people were thinking maybe this [situation] was something more than it was,” he said
Despite the long delay in trading on the exchange, Marcus said Thursday’s low market volatility meant “people were not as affected as they could have been.” He said that if Thursday had been a “super volatile day” it would have left a “emptiness of how am I going to hedge risk” without the ability to trade options on the Standard & Poor’s 500-stock index, or SPX, and the CBOE Volatility Index, or VIX .
Steve Quirk, senior vice president of TD Ameritrade's AMTD -0.56% trader group, also said the CBOE issue was basically a non-event for the online brokerage and its customers.
“The products that [CBOE] has a stranglehold on—like the cash settled indexes—are more institutional products and the core of our business is catered to retail investors,” he said.
Fidelity Investments, which also operates a retail brokerage said, in a statement “any effect on our customers was very limited.”
Though some comparisons have been drawn to Facebook FB +2.72%’s botched IPO, which is nearing its one-year anniversary next month, Marcus gave the CBOE plaudits for getting in front of the freeze.
The Facebook trouble had sent major ripples through so-called mom-and-pop investors. Many inexperienced investors had clamored to get into one of the biggest IPOs in U.S. history, some said it was their first ever IPO attempt, and then found themselves hurt by the very system.
But while Nasdaq left investors unsure of who had bought shares and what was happening for much of that day last May, the CBOE said its system was down right before the market opened and “did a good job of staying in front” of its own problems, Marcus said.
please give me comments thanks
0 comments:
Post a Comment