BNY ConvergEx Group, an agency brokerage, has launched FBW Direct, a new options trading facility to give off-floor clients the ability to route options orders electronically to new exchange-based floor broker workstations (FBW).
FBW Direct uses technology from LiquidPoint, BNY ConvergEx’s options division. “Twenty percent of the options market flow is still high touch, so this is a big step towards the continuing automation of the options market,” Anthony Saliba, CEO of LiquidPoint, told theTRADEnews.com.
According to BNY, the solution will give its clients a new connectivity service for managed options orders. The firm added that FBW Direct will increase the speed of the routing process and eliminate the need for multiple order entries.
“This system is ideal for large high-touch and block orders or from customers that are low-frequency options traders, who don’t need a system to manage their orders,” added Saliba. “The user eliminates key-punching and manual-based practices, meaning errors are reduced. They can still get the broker to use this system on their behalf so it works like a hybrid order system.”
Order status and fill reports can also be sent to clients electronically, and as fills occur, can be integrated into middle- and back-office feeds for real time booking and risk analysis.
BNY customers can connect to the FBW Direct through a LiquidPoint application or a FIX connection. The program supports all options order types, including single legs, spreads, crosses, facilitations and solicitations.