CME Group launches FX Options Volatility converter tool

CME Group has announced the launch of a new FX Options Vol Converter tool. At a time when market participants are looking for efficiencies and ways to lower their cost to trade, this new service is...

First Published by e-Forex News: September, 2020

Paul Houston
Paul Houston

CME Group has announced the launch of a new FX Options Vol Converter tool. At a time when market participants are looking for efficiencies and ways to lower their cost to trade, this new service is the first-ever tool to price CME Group’s listed FX options liquidity in over-the-counter (OTC) terms, helping foreign exchange traders to more easily monitor price relationships, make more informed decisions across markets, and ensure best execution for their trading strategies. “Our new FX Options Vol Converter calculates and converts our listed FX options premiums, fixed strike data, rules, and formats into an OTC-equivalent volatility surface, in OTC standard tenors, deltas, and quote conventions – creating comparable pricing across major options pairs,” said Paul Houston, Managing Director, Global Head of FX products at CME Group.