OTC FX options market gears up for faster electronification
Share of electronic trading remains low but host of factors promise to change that for good
Good things are meant to come to those who wait. Those waiting for greater electronification of over-the-counter foreign exchange options have been waiting unusually long, but good things are finally on the horizon.
The $297.5 billion market is dominated by voice trading. The reasons include the products’ inherent complexity, lack of standardisation and low volatility, as well as the market’s relatively small size.
Some hurdles to electronic trading of OTC FX options are structural and are
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