Dawn of a New Era: Multi-Dealer Electronic FX Options Trading Platforms Have Arrived!
Report Summary
Dawn of a New Era: Multi-Dealer Electronic FX Options Trading Platforms Have Arrived!
Electronic FX options trading will continue to grow as platform technology improves and new regulation makes it more important than ever before.
Boston, May 16, 2012 – A new report from Aite Group examines trends in electronic FX options trading and key challenges faced by multi-dealer electronic FX options trading platforms and their end users. Based on vendor briefings and product demos and trials completed by Aite Group between December 2011 and March 2012, the report profiles six FX options platforms and their features and services.
Though corporate and institutional clients have used currency options as a hedging tool for almost 30 years, only recently has the FX industry evolved to accommodate FX non-deliverable forwards via single-dealer platforms, multi-dealer platforms, and electronic communication networks. The growth of electronic trading in FX is moving from spot and forwards into other derivatives instruments, such as FX options and non-deliverable forwards. This trend will continue and take on an even faster pace of growth, spurred by rapid improvements in technology and mandated regulatory changes in centralized clearing, trade reporting, and electronic execution of FX options and non-deliverable forwards.
“For old-school end-users of FX options, the time has come to embrace the evolution of electronic FX trading, especially in today’s environment, where establishing audit trails through electronic footprints on financial transactions is vital,” says Howard Tai, senior analyst with Aite Group and author of this report. “Market-savvy traders with an affinity for speed and technology can choose from several levels of multi-dealer platforms, including a first-of-its kind, exchange-style ECN platform that comes with full anonymity and can cater to fully blown, API-driven algorithmic execution strategies and high frequency trading tactics.”
The report profiles six FX options trading platforms from the following companies: Digital Vega, GFI Group Inc., SuperDerivatives/FXCM, SURFACExchange, Tradeweb, and 360T.
This 34-page Impact Report contains 13 figures and two tables. Clients of Aite Group’s Institutional Securities & Investments service can download the report.