New Options Trading Platform Launches
Optimal Market Technologies has launched a new options execution platform with backing from leading global market makers. The launch represents continued investment in vertical fintech SaaS designed to automate high-volume, specialized financial workflows with direct B2B integrations.
- The company is a spin-off from RQD* Clearing, a next-generation clearing, custody, and execution platform. Optimal's founder and CEO, Brian Donnelly, also founded RQD* and the options market maker Volant Trading, bringing a background from firms like Goldman Sachs and UBS. - Optimal Market Technologies has secured backing from prominent global market makers including Optiver, Virtu Financial, Akuna, and BSC Ventures. This backing is significant as these firms are major liquidity providers in the options market. - The platform introduces a model called "Competition for Order Flow" (CFOF), which aims to increase competition and transparency in a market where a large portion of retail options orders are routed. This model will have multiple "Primary Market Makers" compete for order flow based on their execution quality, which will be measured and used to reallocate flow monthly. - The launch is a direct challenge to the current leaders in the retail options order flow market. - The U.S. options market has seen record-breaking growth, providing a significant opportunity for new platforms. In 2024, total volume across Cboe's four options exchanges reached 3.8 billion contracts, marking the fifth consecutive record-breaking year. - A significant driver of this growth is the surge in retail participation. Retail trading in the options market peaked at 48% in July 2022 and remained high at 45% in July 2023. A large portion of this retail volume, 56%, is in options with five or fewer days to expiration. - As a new FINRA-approved broker-dealer, Optimal Market Technologies has navigated a rigorous application process that can take six to nine months. This involves a detailed review of the firm's business plan, supervisory procedures, and financial statements to ensure compliance with industry regulations. - The platform is built on what is described as "over a decade of proven, high-performance execution infrastructure" and integrates with clients through standard API or FIX connectivity. This focus on robust technology is crucial in the high-volume, low-latency world of options trading.
