BATS Options, the options trading venue operated by BATS Global Markets, has introduced a suite of free risk management tools to help its members mitigate risk.
The new tools allow trading members to set customisable parameters to their orders to prevent unwanted executions. These include the timeframe of executions, quantity of contracts to be executed and notional volume limits. The parameters can be set simultaneously, which BATS claims will help members meet their specific risk management needs.
“The BATS Options platform is positioned to help participants navigate the transition from a quote driven market to an order driven one,” said Jeromee Johnson, vice president, market development and head of BATS Options. “Controlling execution risk is critical, considering the breadth of order exposure that liquidity providers take on in the options markets. Providing universal access to this sort of technology””technology that levels the playing field””is of benefit to all options market participants.”
BATS Options, which launched in February, has continued to build out its market since completing its stock rollout in May, including the addition of routing capabilities. The platform offers options trading on over 2,100 underlying cash equities.