FX Guys

FX options: rising activity puts post-trade in focus

A surge in electronic FX options trading is among the factors fuelling demand for efficiencies across the entire trade lifecycle, says Steve French, commercial lead, FX and securities at OSTTRA

Volumes in FX options markets are surging and there is no sign of a let-up as interest rates change in major economies when newly elected administrations across a record number of jurisdictions are settling in to govern. The election of Donald Trump as US president may drive increased demand for FX options, as both hedgers and speculators look for ways to navigate expected market shifts and uncertainties.

Given the macroeconomic and geopolitical backdrop of 2024 and looking ahead, the popularity of contracts that grant holders the right but, crucially, not…
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