[Macross8299]

>The volume of futures trading fell by 98% and the options trading market disappeared

You have to wonder what the second-order effects of the options trading market disappearing (or being severely reduced in volume) would be.

I know there are some pretty important businesses that depend on options to hedge against commodity prices. Airliners and oil come to mind.

[ptah]

i would say getting rid of this market makes the financial system healthier. 2008 crash could have been avoided with something like this

[AnimalMuppet]

Would it? It wasn't options trading that caused 2008; it was bad home loans.

[ptah]

yes. the derivatives built on top of bad home loans caused the contagion. it would have been close to a non-event if there were no derivatives based on the bad homeloans.

https://www.investopedia.com/financial-edge/0210/did-derivat...

https://www.thebalance.com/role-of-derivatives-in-creating-m...

[kenneth]

The derivatives were traded in massive blocks, not in high-frequency transactions where fees adding up matters.