Eyes on automation as FX options volumes surge
Dealers and trading platforms are gradually making progress to electronify FX options pricing and workflows
Foreign exchange options are having a moment.
Rising geopolitical uncertainty and volatility have made optionality a much sought-after feature among both hedgers and speculators.
The amount of FX options traded daily by the 20 largest dealers jumped 136% in the five years to October 2024, according to the US Foreign Exchange Committee’s semi-annual volume survey.
Similarly, statistics from the Bank of England’s Foreign Exchange Joint Standing Committee show average daily volumes (ADV) for FX
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