Christian Bruner
Christian Bruner

Options: The next chapter in eFX

Within FX Options there are currently very few electronic trading systems used by customers. Christian Bruner outlines the reasons for this and the benefits that electronic execution brings.

Online FX spot trading systems have finally gained mass acceptance and critical momentum. Almost without exception, top tier FX banks offer customers electronic execution for spot, forwards, and FX swaps, though admittedly there is still wide disparity in the functionality, speed and performance of these offerings. However, for FX option products, there are far fewer electronic trading systems actively used by customers – possibly just two or three. This is ironic, since derivative products – being far more complex – stand to gain even more from the process improvements we’ve seen from today’s online cash trading tools. Online option trading drastically increases price transparency and quoting response times, streamlines trade “detail” taking, creates a more visible audit-trail, provides instant revaluation, makes position rolling much easier, and dramatically speeds up the entire process from...continued

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