OPRA forecasts rising data volumes for 2007

OPRA (Options Price Reporting Authority) has recently corrected its volume forecast. For January 2007, OPRA expects volumes to reach 359'000 messages per second (mps) and 3.3 bln messages per day with a required bandwith of 204.6 MB per second (mbps). In January 2006 volumes of 149'000 mps had been recorded.

This brings the data growth rate up to 200 percent within one year. For OPRA the growth is caused by several factors.

A growing number of market participants operate with a "electronic market access" where quotes are generated automatically. Every machine-generated quote is answered by another automated quote.

The growing economy causes more share splits and spin-offs with a resulting growth in the number of traded stock, which in turn causes more derivatives to be issued.

Penny quoting: Until the end of January 2007 some options will be traded in penny increments during a pilot phase Penny increments will certainly fuel the market, but will also cause volumes to rise as a downside.


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