Andy Webb Freelance writer
Andy Webb Freelance writer

Online FX Option platforms

Andy Webb interviews a selection of leading banks about the functionality of their own online FX Option trading platforms.

Electronic trading of spot FX has obviously become commonplace in recent years. However, it is now apparent that FX options are rapidly moving in the same direction. Bank clients increasingly expect the same capabilities they have when using a voice broker to be reproduced online. Furthermore, the assumption is that these capabilities will include immediate order execution for both vanilla options and first generation exotics. In its previous survey (July 2003) of electronic FX option trading platforms e-Forex found that some banks were still decidedly sceptical about the concept. In their view, the volumes and relative simplicity of spot FX made it a far better candidate for online trading. Nevertheless, with the most recent (March 2005) BIS triennial survey of FX spot and derivatives activity showing FX options activity up by nearly 100% on the previous survey, the potential for growth is clearly present.Data taken from BIS Triennial Central Bank Survey 2004How much of this activity will end up online is a...continued

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