FX options trading technology provider Digital Vega has
launched Intelligent Execution (IE), an engine that provides, the company
claims, “a unique new FX Option execution and workflow management solution”.
The firm says IE fully automates the option trade lifecycle
from order upload, validation, price checking, execution and finally
confirmation. All relevant parameters are user configurable to allow for
changes in market conditions, risk limits, and specific currency pair
liquidity. Users are also able to pair or net individual orders on the fly to
further reduce execution costs.
Digital Vega says IE will generate “significant efficiencies”
for execution desks because smaller but labour-intensive trades can be fully automated
and executed efficiently in the background, allowing traders more time to focus
on higher value, more complex transactions.
“Since the launch of Digital Vega, we have continued to look
for opportunities to bring innovation to a part of the FX market, options
trading, that has so far been slow to embrace automation,” says Mark Suter,
executive chairman of Digital Vega. “We are now getting a real sense that as a
result of increasing pressures on costs, as well as regulatory compliance, long
held attitudes are starting to change and established workflows and practices
are being questioned. FX option users are increasingly looking to introduce
The firm adds that with the Intelligent Execution engine
live in production, it has now started working on a new project aimed at
improving underlying market liquidity which will incorporate a fully cleared
solution as and when this service becomes available.
“Regulation, specifically MiFID 2, will increasingly drive
option flows into electronic channels, MTF’s and OTF’s in 2018,” says Suter. “Our
existing Medusa platform is already MiFID compliant and we will file an MTF
application later this year.”