Trading automation in the non-spot FX world is again firmly in the sights of Colin Lambert and Galen Stops in this week’s podcast, although this time it is in FX options. With SynOption launching in Singapore this week and Digital Vega expanding its capabilities further, they ask, ‘is this the time that the FX options market finally electronifies in the multi-dealer space?’
For once our two podcasters agree that the conditions are probably right for such a move, thanks to changing perspectives on both buy and sell side and while they will undoubtedly not have the field to themselves they are optimistic over the platforms’ chances.
With SynOption based in Singapore the conversation then moves on – via a couple of anecdotes about misreading emails – to news that Standard Chartered has achieved “significant” latency reduction on its first trade on the Singapore e-FX hub. Regular listeners will not be surprised to hear that the cynical Lambert has caveats about exactly how big a gain will be achieved overall.
The conversation then move on with Stops detailing moves in the world of central banks and the push for digital currencies. Noting that there has been a surge in interest in the concept – mainly from emerging economies – he takes listeners through the key points under consideration and then suffers Lambert’s questions on the entire digital currency concept. So, will the concept work, what are the geopolitical influences, what about independent cryptocurrencies like Libra, and why are the central banks pushing the concept? All is revealed in this week’s In the FICC of It.