As the FX space continues to adopt electronic execution across derivative instruments, FX Alliance Inc. (“FXall”) announced today that Goldman Sachs, J.P. Morgan and Morgan Stanley are now connected to FXall’s Trading platform to provide options pricing for clients to deal electronically with each bank. The company reported previously that BofA Merrill Lynch and Credit Suisse were added, thus bringing the platform’s total to five bank options liquidity providers that are auto-pricing options. The advances in electronic trading of FX options mirror those that occurred in the spot FX technology evolution. The ability to stream FX option prices from internal pricing engines on dealing desks outward via APIs has created the opportunity to develop a robust e-commerce infrastructure for these instruments. This, in turn, leads to the progression from single dealer platforms to multibank platforms that bring a heightened view of price and liquidity discovery to end clients.
From the firm’s press release today Phil Weisberg, CE, in turn at FXall commented, “Following our recent announcement about the launch of FX options trading on FXall, we are extremely pleased by the addition of Goldman Sachs, J.P. Morgan and Morgan Stanley to BofA Merrill Lynch and Credit Suisse. These five banks are at the forefront of electronic options trading and their ability to integrate quickly with our system highlights the quality of their offerings and their dedication to providing options liquidity to clients.”
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FXall provides a full end-to-end options workflow solution including post-trade functionality for settlement, premium netting and payments. FXall supports the trading of European option strategies including Calls, Puts, Straddles, Strangles, Spreads, Collars, Butterflies and Strips. Users can also create custom multi-leg strategies and zero cost strategies. Users can also create custom multi-leg strategies and zero cost strategies. The platform’s option calculator facilitates price discovery by solving for strikes, premiums and notional amounts prior to execution.