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Northern Trust enhances global options trading capabilities

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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,” says Guy Gibson (pictured), 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 per cent of total Option Clearing Corporation (OCC) daily volume, on any given trading session,” says 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 customised 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 capitalise on opportunities and achieve our performance outcomes,” says Minyoung Sohn, a founding partner of ArrowMark.

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