Platform for OTC Option Trading Trades 1 Million Contracts

I have not done any OTC option trading myself yet, but if you have
or are planning to, check out the article below. Sounds like the
Parity Energy Platform (PEP) has proven itself as the platform to use.

Parity Energy is pleased to announce that the Parity Energy
Platform (PEP) has executed 1 million option contracts since its
first trade in 2008. PEP is Parity’s online marketplace that gives
traders electronic access to over-the-counter (OTC) energy and
precious metals option markets. The 1 million contract mark
represents a notional volume of 6 billion MMBtu of natural gas and
400 million barrels of oil.

“Surpassing the 1 million contract mark is more than a symbolic
milestone: it demonstrates PEP’s maturity and robustness, as well as
the market participants’ growing acceptance of PEP as the right
solution for the electronic trading of OTC options,” says Charles
Reyl, CEO of Parity Energy. “The first million is the hardest.”

This milestone is significant in the context of the financial
regulatory reform promoted by the Dodd-Frank Act, in particular the
requirement for many OTC transactions to take place on swap execution
facilities (SEF). In contrast with other candidates for SEF status,
Parity Energy’s execution facility is operational today and already
serves as a significant source of liquidity for the trading

“PEP has customers sending and receiving hundreds of thousands of
order changes per day. We’re able to service them in a way that
traditional OTC brokering couldn’t possibly keep up with,” says Kent
Vogel, VP of Trading Solutions at Parity Energy. “It’s clear that
this is the future of OTC trading.”

“This is just the beginning for Parity Energy leading the
transformation of the options market,” says Lou Pellathy, VP of
Parity Energy’s brokerage. “We will continue expanding our model to
include new products in the commodities sector and beyond.

See MarketWatch for the entire article

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