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But we saved everything 🙂.
Corey Hoffstein clarifies that most defined outcome products use FLEX options, which are exchange traded and centrally cleared. According to Hoffstein, these products do not require OTC arrangements or an ISDA, and FLEX options trade via a request for quote (RFQ) system rather than a continuously quoted market.
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Hoffstein previously explained that getting options listed on an ETF is straightforward and reported that options trading became available for certain funds here. He also cited research indicating high active share funds have delivered negative alpha since 2009 here. These earlier insights provide context for Hoffstein's latest comments on defined outcome products.