Frances Maguire
Frances Maguire

Exploring derivative frontiers: extending the reach of electronic FX Option platforms

Frances Maguire speaks to a selection of providers to explore the gradual climb towards fully automating the complexity of FX options.

It has been a slow and gradual climb to automate the complexity of FX options but as Frances Maguire finds out, strides are being made as comfort levels with online execution increase and electronic options pricing becomes more widely available.While pundits believe that a fully electronic market for trading FX options is still about three years off, there is a definite shift in the level of comfort that users have in trading FX options. Just two years ago, it was thought that FX options would always remain as a hybrid market, where voice dealing would continue to supplement the electronic pricing and the STP benefits of automating the process, pre and post-trade.Today, banks are using automated pricing and the development of algorithms for FX options is already in the pipeline. Furthermore, it is the complexity of options products that is actually driving the need for greater automation rather than preventing FX options from being electronically traded.According to David Gershon, founder and CEO of...continued

Exclusive Content

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