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NYSE Euronext U.S. options CEO Steve Crutchfield on mini options, and whether they are a good idea for retail investors.
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Five names only -- -- Crutchfield basing your next US options CEO joins me out from the course the New York Stock Exchange -- I always say that ST -- -- so let's talk about you you only picked five names.
Bureaucracy is many options obviously you looking to get more trading volume and how the reception -- so part of that.
The reception has been great Cheryl and if you're right we picked five names we focused on five of the most actively traded names that are interest you think particularly to those retail investors who may have.
Some of these names -- their portfolio apple Google Amazon and the SPY -- S&P 500 and she'll be gold ETFs.
-- -- Indicating on IC -- god you're trading on ICM exposure that.
That's correct -- -- two options exchanges reception so far has been -- a very solid start.
At last time I checked about thirty minutes ago it looked like industry -- about 141000 of these options are traded.
More than half about 8000 on.
And really great opportunity for those retail investors as you were talking about to be able to make use of options against some of those higher priced stock positions to reduce risk.
In many in many cases for the first time.
Perhaps is -- become incredibly popular 20112012.
Big jump in the numbers.
Upper option contracts traded -- curious what type of revenue oh nice to your next expecting out of that.
Us well you know remains to be seen and it's just the first day of trading we certainly hope to see some growth here obviously -- we trade.
On the MX exchange -- typically a couple million contracts today.
An immediate another couple -- on the -- exchanges as well so.
Really just getting started but we think this a product that has that has -- future -- we have had a lot of growth and options as you said.
Between our two markets in January -- best month ever just south of 30% market share and we're looking to grow from there.
Where's the demand coming from do you find that this is coming.
-- from yes phased retold traders are getting a little international addressing a lot of international investors -- tell.
Chinese retail investors for instance like to come -- and trying trade on the New York Stock Exchange at least tried trades something like this are you finding that that interest is there.
That is certainly growth area for us -- say right now we are targeting those US based retail investors who.
-- use your example someone who owns near 2030 even 40000 dollars of the stock like apple and that's well less than a hundred shares of apple trading well both of 400 that might be 5067 he shares.
That investor before was we priced out of the options market because a single 100 share option was bigger than their equity position.
Now admitting is they could trade 56 or seven and it really being a very good position to protect the -- strategy for example to reduce some of the downside risk -- their.
Before -- right what Kansas why say that maybe international that's especially European very -- looking at this has been on Cyprus.
In this country us about these names in the apple and Amazon and Google that -- this is kind of broad swap that the -- all of names but what types of names do you think you would want to open up -- -- contracts to and have you picked those names yet.
Sure no right now we're focusing on the five names that we batted in and again focusing on high dollar expensive stocks were a single 100 contract option.
Might have been too expensive in the past as you suggest you -- what -- very good example earlier.
But certainly the program is successful it will give a little but -- time but.
There are almost certainly other high dollar earnings were might be appropriate to to fold them into the program and again try to open them more opportunities for those retail investors.
Okay and may not gonna give me the name's Steve but how about a sense of those types of companies -- health care would you be looking in media I mean what he opened sale.
Well I think we're open to companies really in any sector as well as.
Probably some more of those very liquid ETFs because they're they're older ETFs like Jackie QQ like I WM the Russell 2000 ETF.
That we haven't yet included in the program depending on the underlying price of those issues there's certainly got a lot of directions we -- take it if the product that takes off in the -- hoping a well.
-- -- NC mini contracts so certainly something different for our viewers to think about another way to make money.
Seacrest felt nice US options C.
