Barclays Capital (BarCap) has launched electronic trading of vanilla FX options in Asia following the launch of the service in the US and Europe earlier this year. The service is part of the bank’s proprietary platform, BARX for FX Trading.
The platform offers live two-way streaming tradable prices of FX options across 17 currency pairs, from overnight to one year, with auto quoting in up to EUR 100million in major currencies.
The functionality includes prices in single options or two-leg strategies, and the ability to price either New York or Tokyo cut. BarCap plans to add more currency pairs, including emerging market currencies, raise auto-quoting levels, and add higher tenors in the near future, it says.
“Over recent years, electronic dealing has become the standard in spot markets but until now the risk management and price distribution technology has not existed to deliver option pricing electronically that can match the liquidity and pricing of voice dealing. We have developed the system within the BARX platform to provide this, and as this system has none of the friction of voice dealing we will be able to deliver more attractive pricing in a more efficient way,” says Ivan Ritossa, global head of FX at the bank.
BarCap is the first bank to launch two-way streaming tradable prices for FX options – other systems currently provide indicative prices or request for quote tools.