Volatility could pave way for FXOs’ electronic evolution

Turmoil in markets gives options sector impetus to embrace automation, writes CME’s Chris Povey

Vol-paves-way-for-FX options-electronic-future

In recent years, the FX options market has been evolving away from the somewhat archaic over-the-counter voice execution model. Between the end of the global financial crisis and the start of the pandemic, and aided by a prolonged period of low volatility, banks increased their electronic market-making and risk management capabilities.

Progress towards electronification of FXOs has been steady rather than spectacular, and the sector lags behind other asset classes. Yet the return of volatility

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/subscribe

You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to FX Markets? View our subscription options

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: