Mathew Kuppe CTO at 360T
Mathew Kuppe CTO at 360T

Trading FX Options online: the multi-bank portal perspective.

First Published: e-Forex Magazine 23 / The e-Forex Surgery / April 2006

We are a bank with no proprietary electronic distribution channel for FX Options. What’s your general impression on whether FX Options are ready to be traded online and which existing channels could we use for distribution?First of all, yes, FX Options prove ready for online trading. Especially the more vanilla types which are seen increasingly in common use by the buy side and will become more so in the near future. A growing commoditisation and frequency of demand for FX Options, a steep general learning curve in eCommerce undertaken by both buy and sell side over the past few years, as well as a sufficient level of technical sophistication, are a solid basis for taking an instrument like FX Options online. Based on clients’ positive experiences with trading FX Options electronically via single bank platforms, there is now an increasing demand for taking online FX Option trading into the Multibank arena. Given the high costs and limited life cycle of adding new instruments...continued

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