The exchange traded options market is growing at pace, but the nature of the product places more pressure on technologies than is found with other investment instruments. As an option is affected by changes to the underlying instrument involved, the data around an option can alter without any trading having occurred.
The amount of movement can vary tremendously, creating a need for robust systems – even if there is little trading activity – so that they can cope with the volume of information. Gerhard Lessmann, member of the executive board, Deutsche Boerse Systems, gives this example: “In the year 2000 we had 1.2 quotes per traded contract. In 2006 this has increased to 17.09. So we have roughly 15 times the number of transactions per traded contract that we had in 2000. We are not earning money with quotes, we are earning money with a traded contract, but we believe these quotes are very valuable for the market as a whole.”
