On Monday, September 7th, CME Group has declared that they’ll be releasing a new financial tech solution. The software at hand is a forex options volatility tool. The software lets users price exchange-listed forex options liquidity in OTC terms. The exchange’s central limit book is already quite similar to OTC options by function. The tool at hand extracts data from there and, based on that, creates a volatility grid that serves as a comparison.
The change came recently after the company announced that its forex volumes were on a decline in comparison to last year. While metal sales thrived at CME, the company still hopes to boost its volume of FX trades. The new software lets traders follow market movement more closely. As we’re all aware, information is a traders’ most valuable weapon, and the converter enables a smoother flow of information. As such, CME Group’s customers should be able to utilize the most efficient trading strategies with greater ease.
Paul Houston is CME group’s head of forex products, as well as the firm’s managing director. Mr. Houston chimed in, commenting on the software. He explained that the tool, named FX Options Vol Converter, takes forex options premiums, rules, formats, and fixed data, and translates it into OTC-related information. That results in prices between major options pairs being comparable. The managing director also added that the new solution would allow quicker reactions to quality opportunities. They’ll be able to cross-reference prices and other data and decide whether the trade would be beneficial or not.
Some more minor news also came our way from the CME Group. Namely, the company finally reopened its Eurodollar trading options. Prior to that, the option was locked due to issues relating to the COVID pandemic.