Saxo Bank Publishes OTC FX Options Market Information And Client Position Data

Released on: May 06, 2011, 8:08 am
Author: Saxo Bank
Industry: Financial

Saxo Bank, the specialist in online trading and investment, is first to publish market data from the FX Options OTC market. The data, which will be published three times a day on Tradingfloor.com, will greatly enhance traders' understanding and ability to profitably trade FX as an asset class.

This initiative signifies Saxo Bank's unique position as a leading market maker in the interbank OTC markets and exemplifies the value that Saxo Bank's active participation offers to its FX clients.

Information included in the posts is:
- ATM volatilities, which shows the change in volatility of currency pairs
- 25-Delta Risk Reversal, the most widely used parameter in gauging market direction
- OTC Volume index, based on interbank OTC FX Options trade activity
- Market Pin Risk, which shows large strikes that have traded in the interbank market and may act as magnetic levels for the spot price in the future
- Charts, the graphical illustration of Risk Reversals and Implied vs. Historic Volatility
- Retail Position Ratio, which shows client sentiment (bullish/bearish) based on actual client positions
- Current FX Options Board Prices, which allows interested parties to see the competitiveness of Saxo Bank’s streaming quotes

Events in the OTC FX Options market have a direct impact on the development in the Forex spot market. Therefore, this type of data has historically been extraordinarily difficult and costly for traders to acquire. Saxo Bank is making this information publicly available to anyone interested in the Forex market, the largest and most liquid market in the world.

In a statement, Edward Voorhees, Global Head of Foreign Exchange at Saxo Bank, said:
"For market makers in the OTC FX Options market the trend has for some years been risk aversion, which has led to major institutions dramatically reducing their market making activities. Saxo Bank has remained very committed to its market making activities in the FX options space. The reward for being an active market participant is the valuable insight we gain. The options team at Saxo Bank is very proud to be able to share these insightful flow details with all our clients at no added cost.

"It is no longer a question whether the Forex market will become more transparent or not. By making this kind of data publically available Saxo Bank is taking an active role in this development. It is imperative to Saxo Bank to build long lasting client relationships. Among other things, we do
this by supporting and educating our clients.

"We are proud to now offer everyone information of this quality, especially given the history that it has previously been almost unobtainable by traders."

About Saxo Bank:
Saxo Bank is a leading online trading and investment specialist with a worldwide client base. The three specialised and fully integrated trading platforms; the browser-based SaxoWebTrader, the downloadable SaxoTrader and the SaxoMobileTrader application are available in over 20 languages. Saxo Asset Management accommodates high-net worth private clients and institutional investors. In 2010 Saxo Bank continued the diversification of its business with acquisitions of Saxo-E*Trade Bank, a specialist in online investment, and Brørup Sparekasse, a Danish savings bank. The Saxo Bank Group is headquartered in Copenhagen with offices throughout Europe, Asia, Middle East and Australia.

PR Contact:
Kasper Elbjorn
Saxo Bank Corporate Communications
Saxo Bank
40 Bank Street
Canary Wharf
London
E14 5DA
+45 3065 4300
www.saxobank.com

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