Thomson Reuters Doubles up its FX Options Acquisitions, Buys SigmaGenix

Thomson Reuters extends its coverage in the words most liquid asset class with news of its latest acquisition. The firm announced its acquisition of SigmaGenix a leading development firm of FX and options Risk Management systems that was founded by Jeremy Gelber.

SigmaGenix, a start-up firm that was established in 2011 is part of a pact of technology and risk providers to the growing options industry. FX Options were typically traded through voice broking, however with the acceptance of e-trading during the turn of the century, especially in liquid asset classes such as FX, participants are shifting to platforms that offer streaming tradable prices.

The latest acquisition complements the firm’s purchase of Tradeweb’s FX Options business last month. Thomson Reuters offers a full suite of FX Options products through its FXall, Tradeweb and now SigmaGenix solutions. According to figures reported by BIS in 2010, FX Options make up an estimated 10% of spot volumes.

Phil Weisberg, global head of FX, Marketplaces, at Thomson Reuters spoke about the purchase in a statement, he commented: “With the addition of SigmaGenix, Thomson Reuters is increasing its on-going commitment to the interbank wholesale options community."

“We are committed to investing in this space through the right talent, expertise and trade analytics that SigmaGenix have built, which are second to none. Adding someone with Jeremy’s industry experience – on both the buy and sell-side – gives us unique insight into client needs in the FX options space where we expect the pace of change to accelerate. SigmaGenix’s intellectual property augments analytics available in Eikon as well as our transactional capabilities in Dealing and FXall which were accelerated by our recent acquisition of Tradeweb’s FX Options business and precedes the imminent launch of our SEF.”

Mr Gelber will continue with Thomson Reuters as global head of FX Options, reporting to Phil Weisberg, global head of FX, Marketplaces. Mr Gelber has over 20 years of experience in the markets trading FX options, his previous roles have included portfolio manager at; Soros Fund Management, BlueCrest Capital Management and London Diversified Fund Management.

“The pace of evolution towards electronic trading in the FX options community is on the increase,” said Jeremy Gelber, global head of FX Options, Marketplaces, Thomson Reuters. “I am looking forward to partnering with the options community to innovate and deliver more value to this market.”

FX Options are expected to experience further growth as more buy-side members take advantage of Liquidity and trading portals. Mr Weisberg concluded in a comment to Forex Magnates: “We expect the pace of innovation in FX options to accelerate and wanted to supplement our expertise in this area. With on-going regulatory changes, we foresee additional opportunities to serve our customers as the options market becomes increasingly electronic and more fully integrated into the existing workflows of both the buy and sell-side.”

Thomson Reuters does not disclose FX Options volumes.