A veteran market maker who's running unopposed for the topelected post at the Chicago Board Options Exchange says he wants toexpand the customer base, introduce new products and improverelations with the city's other exchanges during his upcomingone-year term.
Though the CBOE is still hurting from the 1987 stock marketcrash, William Floersch said in an interview Friday he's bullish onits future. "Volume is increasing. More institutions are using ourmarkets. The best days of CBOE are ahead, the tough times nownotwithstanding."
Floersch, 46, who has traded options since 1974, is slated tosucceed incumbent Vice Chairman Thomas Bond at a Jan. 9 boardmeeting. Bond is stepping down after three consecutive terms.
One top goal for 1991 is attracting new customers, Floerschsaid. The exchange should continue helping institutions getclearance to trade options from securities and insurance regulators,he said, and expand programs aimed at educating investors. One idea,he said, is providing computer software that would allow brokers toprecisely monitor customer trading risks.
Additionally, the CBOE needs to compete with the American StockExchange in New York for new stock warrant products, and introduceup-to-date technology such as the handheld trading terminals nowbeing developed.
Though the technology is still "tricky," he said, the exchangewill introduce during the first quarter of next year a prototypeterminal designed to replace paper trading cards and providecomputerized risk analysis.
Superior trading technology also may confer an advantage iffederal regulators follow through on their plan for multiple listingof options that are now exclusively traded at a single exchange. TheCBOE is proceeding on the assumption multiple listing "willeventually happen," Floersch said. That means a top priority issatisfying customer demands for state-of-the-art services such asfirm, timely price quotations, he said.
Another priority is reviving dormant relations between CBOE andthe city's other exchanges. Floersch sees "a window of opportunity"in last week's election of William O'Connor, an options exchangefounder, to head the Chicago Board of Trade. The CBOE is open tonegotiation on leasing a spare trading floor that now stands vacant,as well as some type of cooperative international marketing, Floerschsaid.
The CBOE even would consider a joint-venture involving newproducts, he said.
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