10 years ago
Volatility stings dealers
The European equity derivatives business was tested this week after market moves wiped out profits for dealers. Options traders worked frantically to cover their positions, and watched their bonuses slip away. The head of equity derivatives at a French hose said, “its been a bloodbath”. The head trader at a Japanese house said, “its not been pretty.” With everyone short vega, few options were being traded in London last week.
Cooler heads show themselvesA few days into the...