Digital Vega, a provider of multi-dealer FX option trading services, reported record-high volumes for the month of October, both on an annual and monthly basis. The company said in a press release that its performance demonstrates the changing nature of the forex options market, with technological innovation spearheading this change.
Tech Drives Market Change
Overall trading volumes came in 30 percent higher on a monthly basis in October, and the annual increase was 59 percent. During October, Digital Vega also reported its strongest single trading day as well as the greatest number of active users.
“Increasing levels of interest and adoption from the global banking community”
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Average daily trading volumes since the start of the year have risen to $19 million from 10.5 million, with ticket numbers up by 45 percent, the executive chairman of Digital Vega said, adding: “We are also seeing increasing levels of interest and adoption from the global banking community; a greater focus on cost saving and efficiency means that they can now instantly access on-demand competitive liquidity from 13 major FX banks that is increasingly better than that available through traditional channels such as the voice broker community.”
The company noted that a growing number of traders are now moving towards specialist forex options providers, benefiting from the enhanced offering of complex option pricing and execution. Digital Vega also pointed out the transformation in the electronic trading sector, with the most recent example being the deal between ICAP and Tullett Prebon.
Innovation in Spotlight
Digital Vega is ready to ride the wave of fintech innovation, aiming to maintain its place among the leading innovators in the industry, the company said. It will soon release a fully automated staging and execution engine that will aid the management of large quantities of small options trades. The new product will supplement its FIX API, a buy-side solution where Digital Vega has seen increasing use lately.
The company added that its Medusa platform is also becoming increasingly attractive for sell-side market makers who are utilizing the detailed data it offers to adjust their pricing in a timely and more adequate manner.