Remarks at the Options Market Structure Roundtable

Good afternoon, ladies and gentlemen, and welcome back after a productive morning.

In just a few moments, I will ask Jamie to rejoin us for our third and final panel of the day. But first, I want to acknowledge the Division of Trading and Markets for organizing today's program-and thank our more than two dozen panelists for bringing such insightful perspectives to it. Of course, before I move on to my remarks, I must also add the customary disclaimer that the views I express here are my own as Chairman and not necessarily those of the SEC as an institution or of the other Commissioners.

As our panelists underscored this morning, the U.S. options markets have grown remarkably in their breadth and depth. Today there are more exchanges trading more products, generating a dizzying amount of message traffic. For example, OPRA disseminates over 3,200 times more messages today than it did in the year 2000. And a broad cohort of retail investors now participates in these markets with greater ease and at greater scale.

Given all that they share in common, it is tempting to discuss the options and equities markets in tandem. After all, the two are deeply interconnected, and developments in one market can have profound implications for the other. But commonalities between the options and equities markets can also obscure important distinctions among them.

As options markets operate according to their own conventions, so they merit attention on their own terms. Yet, a sustained focus on listed options has eluded the Commission for some time. Thanks in large part to Commissioner Peirce, I am pleased that with today's program, we are bringing that stretch to a close.

Now, I should note that this roundtable is neither a prelude to, nor a harbinger of, any options rulemakings in the immediate term. Rather, today is a chance to celebrate the strength of our options markets and to recognize the important place that they have come to occupy in the broader financial ecosystem. Today's panel discussions also offer an opportunity for leading experts and practitioners to examine what is working, to identify where closer attention is warranted, and to consider the opportunities and challenges that lie ahead.

In that spirit, I should also like to acknowledge the important work that is taking place beyond the Commission's walls. Through the Listed Options Market Structure Working Group-or LOMSWG, as I understand its members have come to call it-SIFMA and the Security Traders Association convene market participants with sometimes divergent perspectives to discuss issues of mutual interest. That kind of industry-led engagement can be enormously constructive by helping to develop, socialize, and refine proposals before they make their way to the Commission for formal consideration.

Taken together, efforts like today's roundtable and the ongoing work of groups like LOMSWG strengthen our options market structure in ways that will keep it the envy of the financial world as it gains volume and scale.

Which brings us, at last, to our closing session. I am delighted to turn things over to Jamie for a discussion on the growth of listed options, the associated challenges and opportunities that growth presents, and the issues that the Commission and market participants should consider in the years ahead. I expect this to be a thoughtful and wide-ranging discussion. And I thank you all once again for being here. Please enjoy the remainder of today's program. Thank you.