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Asset Outlook: How the Options Market is Evolving .

In a CNBC interview, Nasdaq's Head of U.S. Options and the U.S. Options Managing Director describe Nasdaq's use of machine intelligence to modernize market structure.

Asset Outlook: How the Options Market is Evolving

By Kevin Kennedy / Senior Vice President & Head of U.S. Options

Nasdaq’s Kevin Kennedy, SVP and Head of U.S. Options, and Greg Ferrari, Managing Director, describe the evolution taking place in the options market and how Nasdaq is using its FinTech background, execution culture, intellectual capability, and machine intelligence to help grow and modernize market structure.


Traditionally, options have played second fiddle to equities, but we see the options industry, after a long, stagnated period of low interest rates and low economic growth, to be on the cusp of something big. With their ability to reduce risk and enhance yield, options are the current focus of many investors. To capitalize on the options trend appearing in the market, Nasdaq is leveraging our FinTech prowess in order to grow and modernize the currently evolving market structure.

Consider the next sector of growth. Is it IRAs, bringing in assets for the baby boomer generation? Maybe, it’s Millennials, beginning to consume data and enter the asset class. Or possibly, it’s Europeans, increasingly using the listed options market. The sectors for advancement are endless, and we believe that Nasdaq is at the forefront of discovering which ones need to be explored.

Once specific sectors have been identified, we can work to enhance the investment process for our clients. For years, Nasdaq has been collecting vast amounts of data in the options space while also investing time and money into machine intelligence. We are also working to understand our end-user clients and why they may or may not be using the asset class. By understanding our user base and streamlining data through machine intelligence, we can present a toolkit of information to our clients in an efficient and innovative way—enabling them to better manage their risk through access to the data points that drive an informed investment decision.

Nasdaq is the leader in multi-listed equity options and with this prominent position comes great responsibility. To continue revolutionizing the industry and encouraging others to do the same, we are working with peer exchanges and the SEC to modernize the market structure. As the economy continues to grow, as interest rates rise and volatility returns, we are poised to make positive change.

To view the entire video on CNBC, please click here >

For more information on Nasdaq-listed options, please contact sales@nasdaq.com.


Neither Nasdaq, Inc., its subsidiaries and affiliates (collectively, "Nasdaq"), nor any of the Nasdaq third party providers ("Third Party Providers") nor any of these entities’ officers, employees, directors, or agents makes any specific promises with respect to the Nasdaq products and services including guarantees of accuracy, uninterrupted or error free service. Additionally, Nasdaq has not passed on the merit of nor has it endorsed any of the securities or information. The information contained herein is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.

Because of the possibility of human and mechanical error as well as other factors, neither Nasdaq nor the Third Party Providers are responsible for any errors or omissions by either Nasdaq or the Third Party Provider. All products, services and information ARE PROVIDED “AS IS” WITHOUT WARRANTY OF ANY KIND. Neither Nasdaq nor its Third Party Providers make any representations or express or implied warranty and both Nasdaq and its Third Party Providers disclaim all warranties of any kind including warranties of accuracy, timeliness, completeness, merchantability, or fitness for any particular purpose. Neither Nasdaq nor the Third Party Providers shall have any liability in tort, contract, or otherwise (and as permitted by law, product liability), to user and/or any third party and in no event shall Nasdaq or its Third Party Providers have any liability for any lost profits or special, incidental, punitive, indirect, consequential or direct damages, even if notified of the possibility of such damages. Some U.S. states and foreign countries provide rights in addition to those above or do not allow the exclusion or limitation of implied warranties or liability for incidental or consequential damages. Therefore, the above limitations may not apply to you or there may be state provisions which supersede the above. Any clause of this Disclaimer declared invalid shall be deemed severable and not affect the validity or enforceability of the remainder.

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