Real-time market prices for CME’s new European-style Euro FX and Japanese yen options contracts are now available on SuperDerivatives’ SD-FX platform. Additionally, SuperDerivatives’ users will be able to view indicative volatility levels for CME’s FX options contracts.
“Around 90% of the banks active in FX options use SD-FX,” said David Gershon, chief executive of SuperDerivatives. “The venture between SuperDerivatives and CME will form a bridge that will help provide greater price transparency between the OTC and exchange-traded FX options markets.”
“CME is at the forefront of the emerging convergence of the OTC market and the exchange FX markets,” said Rick Sears, managing director, CME Foreign Exchange. “Services like SuperDerivatives and our just launched, CME FX on Reuters, will result in more dynamic and efficient FX markets. Our new Euro FX and Yen options offer market users European-style expiration, which mirrors the OTC market for options. With SuperDerivatives providing indicative options pricing in volatility terms, these new CME FX options products will be more accessible to a global base of users.”
SuperDerivatives will initially provide a new page on SD-FX displaying indicative volatility as generated by its benchmark pricing model, for CME’s options on FX futures. In the second phase, SuperDerivatives will add trading functionality to allow its customers to buy and sell CME FX options contracts through SD-FX.
“Exchange-traded FX options are quoted in a slightly different way from what is standard in the OTC market. To avoid confusion, end users need access to a system, such as SD-FX, which provides a real-time comparison between the two markets. SD-FX lets them quickly and easily find out where the best price or trading opportunity is,” said Gershon.