Frances Maguire
Frances Maguire

From desktop to API - meeting new demand for FX Option platforms

With all other instruments traded electronically and with new technology available for trading FX options, interest is now turning to the last bastion of telephone trading, writes Frances Maguire.

Getting the comfort levels to trade the more complex FX products electronically has taken longer than expected but coupled with the recent advancements in trading technology, the time is ripe for a final push towards the e-trading of FX options. Already first generation FX options are being traded on screen and with two new FX options platforms set to launch – one of them bringing an ECN-style platform to the FX options market for the first time – it looks as though a break thorough has been made and one that will even bring new participants to the market. Increasing demand Ralf Behnstedt, managing partner of FX Architects International, a team of FX specialists advising on how to strengthen FX business and operations, believes that the increasing global demand for FX options is based on a variety of factors, not least because the financial turmoil and the resulting increase in regulatory requirements is forcing the sell-side to review the business models for providing OTC derivatives. He...continued

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