"Thinning Liquidity Adds to Headaches for Traders

As summer wanes, assets from stocks and bonds to currencies and derivatives are hard to trade"

The Wall Street Journal sites ORATS here:

  • "Meanwhile, the number of options available to buy or sell on one of the biggest exchange-traded funds tracking the S&P 500, used to hedge portfolios, fell to the lowest level of the year, Option Research & Technology Services data show.

We used our Data API to provide the Wall Street Journal with important liquidity information for their story. Using the Strikes endpoint in our API, we measured the size on the bid and ask each day in 2019 and showed how the bid-ask size fell on the volatile days.

Here's a graph of the market width and SPY price. Note the spikes around market corrections:

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Here's a link to the WSJ story that requires a subscription.

More reading here.

 

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