Northern Trust Enhances Options Trading


Northern Trust Enhances Global Options Trading Capabilities

Dedicated Options Trading Desk to Meet Increasing Demand from Sophisticated Institutional Client Base


CHICAGO, July 25, 2019 – Northern Trust has established a dedicated options trading desk within its institutional brokerage business, expanding its global capabilities in response to growing demand from asset owners and asset managers. The Chicago-based options desk provides institutional clients globally with options trading and streamlined reporting for prime brokerage.


“As sophisticated investors navigate fluctuating markets, Northern Trust continues to broaden our capabilities to increase speed, provide transparency and manage market impact, all of which can contribute to investment performance results,” said Guy Gibson, Global Head of Institutional Brokerage. “This new options trading desk demonstrates our commitment to meet the evolving needs of asset manager and asset owner clients who seek tailored solutions to manage risk and portfolio exposures efficiently across global markets.”


Options trading at Northern Trust is offered through an agency model with no principal trading operation in order to drive alignment with client interests and best execution practices. Through its proprietary network, Northern Trust provides clients with access to deep pockets of diversified liquidity over a range of trading venues, while working to maintain as low a market impact as possible. Additionally, Northern Trust improves the client options trading experience with enhanced prescriptive and exploratory analytics developed in-house and through strategic partnerships.


“From 2015 through 2018, Northern Trust recorded triple-digit annual growth within our options business, with client volume approaching nearly 3 percent of total Option Clearing Corporation (OCC) daily volume, on any given trading session,” said Jon Cherry, Global Head of Options, Northern Trust Capital Markets. “By setting up a standalone options team with dedicated sales, trading and support staff, we are committed to help investors achieve their goals and objectives.”


Denver-based asset manager ArrowMark Partners has worked with Northern Trust to craft customized options strategies around portfolio positions. “Northern Trust provides services that are tailored to our investment objectives and risk appetite. We appreciate their guidance and perspective on market trends to help us capitalize on opportunities and achieve our performance outcomes,” said Minyoung Sohn, a founding partner of ArrowMark.


Northern Trust executes more than $350 billion notional worth of U.S. Listed and FLEX options volume annually, as of December 31, 2018. Using advanced technology and deep industry expertise Northern Trust Capital Markets delivers innovative technology, transparent trading, quality execution, smart liquidity solutions and regulatory compliance services across institutional brokerage, transition management, securities lending and foreign exchange. Capital Markets is a division of Corporate & Institutional Services, which provides asset servicing, fund administration and middle office solutions to institutional asset managers and asset owners around the globe.


About Northern Trust

Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 20 U.S. states and Washington, D.C., and across 23 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of June 30, 2019, Northern Trust had assets under custody/administration of US$11.3 trillion, and assets under management of US$1.2 trillion. For more than 125 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Please visit our website or follow us on Twitter.

Related articles

  1. Exchange group’s crypto suite has had consistent volume and open interest growth.

  2. 2016 Outlook, Edward Tilly, CBOE Holdings

    Exchange group rolls out additional expirations for SPX Weekly Tuesday and Thursday contracts.

  3. Anticipated Ethereum Merge has increased demand to hedge risk on a regulated venue.

  4. From The Markets

    CME Launches Ether Options

    Interest in Ether derivatives is surging ahead of the upcoming Ethereum Merge.

  5. Rate Hike May Nudge Vol Higher

    SOFR futures ADV in August was equivalent to 164% of Eurodollar futures ADV.