Tradition Enhanced FX Options

Key features of Tradition Enhanced FX Options

139 currency pairs for ATM (At-the-Money) Straddles, including 5, 10, 15, 25 & 35 Delta risk reversals and butterflies.

Volatility surfaces running from 1W up to 30 years, depending on currency and liquidity.

3 snaps per day (London, New York and Tokyo closes)

Background

Tradition-ICAP conducts its business as an independent intermediary in Over the Counter (OTC) FX Options and has offices in London, New York, Frankfurt, Copenhagen, Tokyo, Hong Kong and Singapore. In November 2001, the company integrated the Volbroker system into its currency options business. This created an inter-dealer broking consortium that combines the strengths of voice brokered liquidity together with the market’s leading FX Options electronic broking platform.

Volbroker was the first electronic inter-dealer trading environment for FX Options. Designed by FX options traders for real-time performance, with liquidity support from the world’s top interbank market makers. There are 30-40 interbank participants publishing FX options pricing on the platform, either directly or through Tradition’s global FXO brokerage desks. Volbroker is the leader for electronic price transparency and efficiency in the USD 5 trillion currency derivatives market.

Tradition and Numerix have joined forces to provide a best of breed FX Options Volatility data service. This offering combines Tradition’s global market leading FX Options pricing and trade data with Numerix’s unrivaled analytics, providing the highest quality volatility surfaces in over 130 currency pairs. Numerix was founded in 1996 with the mission of bringing transparency to the pricing of financial derivatives. Since then it has established itself as the global leader of financial analytics and has evolved to become a provider of pricing and risk solutions for the capital and insurance markets.