Steven Reiter
Steven Reiter

The option to go exotic

Frances Maguire looks at why, just two years since the first electronic options facilities began appearing, the banks now believe the time is right for more exotic options to be executed online.

First Published: e-Forex Magazine 24 / Features / July, 2006

Trading FX options online is evolving fast. Just two years since the first electronic options facilities began appearing, the banks believe the time is right for more exotic options to be executed online, writes Frances Maguire.The FX options market is a very broad market, from central banks to retail banks, and such a diverse customer base can all benefit greatly from the transparency of online pricing and online trading. Already, the appetite is increasing for more than just vanilla deals to be executed online and the banks are racing to add tradeable exotic options to their options trading platforms.Steven Reiter, head of FX options at Citibank, says: “The greatest demand and growth has been from the second and third tier banks that are not liquidity providers but have their own regional clients and depend on the major market making banks for liquidity. Online platforms for options are tremendously valuable because we can offer ‘click and deal’ trading for an infinite number of...continued

Exclusive Content

The full article is only available to current subscribers. Click here to sign in or subscribe by clicking here