 |
|
"FX professionals are now looking for the ability to offer their clients the next generation of exotic FX options"
David Gershon,SuperDerivatives |
While many participants in the foreign exchange options market undoubtedly prefer to use their own or off-the-shelf pricing systems, most will be in general agreement that SuperDerivatives has played a very important role in bringing transparency to what was once an opaque sector. And the fact that it provides an easily available and independent price on a wide range of different options brings comfort to many risk managers.
The company’s latest initiative is to upgrade its SD-FX option platform to include fourth-generation exotic structures, including cross asset barriers, quanto, dual euro digital, dual digital and path dependent basket options. SD-FX now covers around 150 different types of options on over 100 currency pairs.
"SuperDerivatives is a useful check, especially for financial controllers," says the global head of options of one international bank based in London. "We don’t use it to price on the trading desk, but it’s a good sales tool and it does provide an independent price which can be used to check that reported valuations are not too far off," he adds.
According to David Gershon, chief executive of SuperDerivatives, the march towards complexity has increased the need to use platforms such as SD-FX, which are web-based, scalable and easily integrated into institutions’ existing trading and risk management structures. "The FX derivatives market has evolved rapidly – vanilla and first generation exotics have been commoditized and standardized. FX professionals are now looking for the ability to offer their clients the next generation of exotic FX options. We believe that our FX next generation functionality will further increase the volume of derivatives traded and contribute to the evolution of the market," he claims.
