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

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The evolution of the sell-side front office: FX options

smartTrade is observing a significant trend among its clients and prospects: banks are increasingly enhancing their sell-side front office offerings by incorporating more sophisticated products such as FX options into their end-client solutions

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