Frances Maguire
Frances Maguire

Transparency, flexibility and liquidity - redefining standards in electronic FX options

As the FX industry enters into a new era of electronic trading for FX options, Frances Maguire examines the key role that technology is playing in the provision of new and additional services whilst redefining standards in the way these instruments are traded.

There are high hopes that even instruments as complex as FX options can be fully electronically traded, bringing not only greater convenience to existing users but also attracting new customers. For this reason, both banks and systems providers are investing heavily in smarter trading technology, rich functionality and better integration techniques to smooth the transition to electronic trading for FX options. FX options has already one multi-bank platform and now front office systems provider, SuperDerivatives (SD), has recently launched an anonymous multi-bank trading platform for bespoke OTC derivatives. As an anonymous platform, with no broker fee using prime brokers for clearing, it could almost be regarded as an ‘exchange’ for OTC products. In its first phase it offers bespoke FX options in major and emerging markets currency pairs and is aimed at transforming the way FX options are traded. Electronic platforms Zohar Hod, Vice President, Strategic Sales, at SuperDerivatives says there...continued

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