Optiver Enters Autocallable ETF Market Making

Optiver has expanded its market-making activities into autocallable ETFs, beginning with WisdomTree’s new defined return UCITS ETFs linked to the EURO STOXX 50. The firm became an official market maker for the products on September 30, providing continuous two-way pricing as well as RFQ, opening auction, closing auction and VWAP execution. WisdomTree initially launched two strategies, including a standard autocallable ETF with a 100% annual call barrier and 70% protection barrier, and a defensive version with a declining call barrier from 100% to 75% and a 65% protection barrier. The ETFs use collateralized swaps and hold a ladder of autocallables with staggered strike dates, while publishing daily holdings and NAVs. Optiver said the structure combines features of traditional structured products with the liquidity and transparency of the ETF wrapper.