Market operator Tradeweb Markets has opened an electronic multi-dealer trading platform for FX options.
The new Tradeweb FX options marketplace enables options trading on major currencies and allows buy-side investors to request quotes from several dealers simultaneously. Users can trade vanilla currency options or multi-leg strategies. The platform supports G10 currencies and uses the multi-dealer request for quote (RFQ) trading protocol pioneered by Tradeweb for the fixed income markets, allowing clients to hold a real-time auction with multiple dealers.
Tradeweb’s FX options marketplace follows the launch of platforms for interest rate and credit default swaps in 2005 and equity derivatives in 2010. The latest platform features integrated trade processing and post-trade reporting. Seven dealers are currently providing liquidity to Tradeweb’s marketplace, while several others are in the process of joining, according to the platform operator.
“Derivatives traders are seeking access to high-quality liquidity, fast execution and efficient processing,” said Enrico Bruni, head of European markets at Tradeweb. “Our FX options platform addresses these needs by providing clients with competitive dealer auctions, full workflow integration and electronic post-trade processing.”
Meanwhile, Commerzbank Corporates & Markets has integrated technology firm smartTrade’s FX liquidity management system into its proprietary FX platforms. The new technology aggregates liquidity from Commerzbank’s global trading business to create a single global pool of liquidity for the German bank’s clients and traders.
The system uses smartTrade’s liquidity aggregator to create a single pool, LiquidityCrosser for matching orders internally, LiquidityOrchestrator to manage internalisation and external routing to support best execution, and LiquidityConnect to integrate the system with external liquidity and execution venues, as well as internal systems for pricing, settlement and clearing.
“Our focus is to provide clients with off-the-shelf components for the core FX trading system along with a flexible API supporting standard Java, C++ and C# code, enabling the clients’ team to focus on building in their ‘special sauce’ while keeping their intellectual property in-house,” said Harry Gozlan, CEO and founder, smartTrade Technologies.