%0 Journal Article %A Joanne M. Hill %T Equity Trading Capacity Revisited %B Growth, Fragmentation and Fluidity %D 2007 %R 10.3905/jot.2007.682137 %J The Journal of Trading %P 21-36 %V 2 %N 2 %X Equity futures and options have been traded for a quarter of a century on organized exchanges; a well-developed and rapidly growing over the counter (OTC) market exists for swaps and options with competitive market-making by global investment and commercial banks. The trading of portfolios of stocks is low-cost and growing — now regularly representing 30–40% of New York Stock Exchange (NYSE) share volume — facilitated by the ability to hedge equity risk using derivatives. In the short span of just five years, exchange-traded funds (ETFs) have become prominent hybrid vehicles used for both trading and investment purposes by individual, institutional, and hedge fund investors. (ETF $ volume traded now represents just 30% of the NYSE volume compared to 9% five years ago.) In this article, we explore some trends and issues in cross-product equity market capacity.TOPICS: Options, futures and forward contracts, exchanges/markets/clearinghouses %U https://jot.pm-research.com/content/iijtrade/2/2/21.full.pdf