FX Options given a major boost as States Street takes stake in Digital Vega

FX Options have long been the sophisticated traders tools and volume was limited to bank trading desks, hedge funds and professional traders. However with the benefits of how options can be used in bull and most importantly bear markets (post Credit Crisis 2008) the FX options market is ready for a make over.

Digital Vega, the multi-dealer FX options Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term today announced that State Street Corporation has taken a minority stake in the company. Following the recent announcement that Deutsche Boerse acquired a minority stake in Digital Vega, this further strengthens the Company's ability to invest in its expanding business, and simultaneously provides a formidable platform on which to build and deliver a market leading suite of products and services

As a result of this investment, both parties will leverage their advanced FX platforms to deliver an FX capability that includes State Street's Currenex FX platform with Digital Vega's innovative new FX Option trading tools.

Mark Suter, CEO of Digital Vega says "From the outset of the Digital Vega project, we knew that in order to compete on the global stage, we would need strategic partners, and with this investment the final piece of that plan is in place.

With investment and support from two such important institutions as Deutsche Boerse and State Street, our ability to leverage the complementary strengths of both firms ensures that we are now ideally situated to rapidly deliver a range of market leading products and services to a huge and diverse global customer audience.

This unique partnership will also allow us to adapt quickly and efficiently to upcoming changes in the regulatory landscape."

State Street made a popular uprise in the FX markets after purchasing Currenex an FX ECN platform. Although it is regarded as one of the most reputable particiapants in the FX interbank space the journey hasn't been easy. The SEC was investigating errors in its pricing. In its most recent company earnings (1st half 2011) it reported a 9% drop in foreign exchange trading revenues due to a decrease in Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term in addition its trading revenues, brokerage and other fees were lighter compared to 2010's figures, revenue slipped to $311 million from $326 million.

Grab your latest copy of the Forex Magnates Retail Forex Industry Report.