FX Options get boost with Tradeweb platform

Tradeweb Markets LLC announced the introduction of an electronic, multi-dealer-to-customer trading platform for FX options. This is the fourth derivatives
Photo: Adil Siddiqui

Tradeweb Markets LLC announced the introduction of an electronic, multi-dealer-to-customer trading platform for FX options. This is the fourth derivatives marketplace to have been launched by Tradeweb since 2005. The new platform enables options trading on major currencies and allows buy-side investors to request quotes from several dealers simultaneously. Participants also benefit from integrated trade processing and post-trade reporting.

“Derivatives traders are seeking access to high-quality liquidity, fast execution, and efficient processing,” said Enrico Bruni, head of European markets at Tradeweb. “Our FX options platform addresses these needs by providing clients with competitive dealer auctions, full workflow integration and electronic post-trade processing. Clients can now achieve the improved level of performance that they are striving for in today’s markets.”

Seven leading dealers are currently providing liquidity to the marketplace, while several other firms are in the process of joining the platform as liquidity providers.

Users of the Tradeweb FX options platform can trade outright plain vanilla currency options or multi-leg strategies on a live or delta-exchange basis. The G10 currencies are initially supported. The platform utilizes the multi-dealer request-for-quote (RFQ) trading protocol pioneered by Tradeweb for the fixed income markets, allowing clients to hold a real-time auction with multiple dealers.

The new FX options marketplace extends Tradeweb’s legacy of innovation in derivatives, and follows the launch of platforms for interest rate and credit default swaps in 2005, and equity derivatives in 2010.

Traditional spot FX brokers have been looking to branch out and firms like Alpari had launched FX Options.

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