Tradition-Icap has announced the launch of its new daily Volatility Fixing service Vol-Fix. This service provides an independent and reliable market data reference point to help create a fully tradable asset class for trading volatility.
By establishing a dependable and tradable fix, the market will have an increased ability to create new products and services, such as cash settled forward volatility agreements, volatility trading funds, volatility indexes and hybrid instruments.
Starting with the most liquid tenors in EURUSD, the service will then be extended to cover other highly liquid currency pairs, including USDJPY, EURJPY, GBPUSD, EURCHF, USDCAD, AUDUSD, as well as the most liquid emerging market pairs.
Terry Benson, Global Head of Business Development, Tradition-ICAP, said, “Vol-Fix has been designed with input from the market in order to meet its requirements on an ongoing basis. It will help establish a much greater level of certainty and assurance when it comes to volatility trading, which we believe will play a key role in the creation of new products.”