Expanding its already deep liquidity pool, Refinitiv’s FXall has recently added Optiver as the first non-bank liquidity provider for FX options on the platform. A leading global electronic market maker, Optiver is a major market maker for FX options on the CME and growing rapidly in the FX OTC market.
FX options volumes on FXall reached new levels in 2020 with a 26% year-over-year increase. During a year marked by market turmoil in the wake of the Covid-19 pandemic, buy-side participants on FXall increasingly relied on FX options to hedge their currency exposure.
Attracted by the greater transparency, audit trail, and operational efficiency of electronic trading, a wide range of buy-side institutions use FXall to access deep options liquidity. From a single interface, FXall clients can trade both vanilla and exotic options strategies, secure the best price from a panel of their preferred liquidity providers, and execute the trade on the relevant regulated venue (SEF or MTF).
The progressive electronification of over-the-counter (“OTC”) options trading, although lagging the broader FX market, has seen liquidity providers invest significantly in their e-trading capabilities and adopt electronic means of price formation and distribution. Over 66 market makers now provide electronic options liquidity to clients via FXall, and nearly one third are now responding to client RFQs in an automated way via API.
Jill Sigelbaum, head of FXall, Refinitiv, commented:
“The record-growth of options trading during one of the most transitional years for the trading sector validates the effectiveness of our platform to deliver seamless end-to-end trading solutions across all segments of the FX market. The addition of Optiver, a market-leader in options, builds on this commitment and our strategy in 2021.”