The algorithm offers clients who trade options a variety of functions to automatically manage their positions. RBS Agile monitors the gamma of an option’s position and can automatically buy or sell spot FX to ensure the position remains within predetermined boundaries. The algorithm can also be used to replicate volatility swaps with different fixings, allowing clients to trade hourly gamma against daily gamma, for instance. The new algorithm was originally only used by RBS options traders to better optimize their time and efficiently manage their options positions. The bank said the algorithm is the first of its kind to be made available to clients to better facilitate volatility trading.