SpectrAxe Partners with OSTTRA for OTC FX Options Market

SpectrAxe has partnered with OSTTRA to offer an end-to-end service in the FX options market, from price discovery to execution, booking, and risk management. SpectrAxe is an FX options market provider, and OSTTRA provides advanced post-trade solutions for global OTC markets. Let’s explore the key highlights of the partnership.

SpectrAxe Partners with OSTTRA – About the Partnership 

The partnership will deliver an end-to-end service for the OTC FX options market. The partnership will combine SpectrAxe’s innovative CLOB trading platform with OSTTRA’s rich post-trade solutions.

Features of the OTC FX Options Marketplace

End-to-End Service:

Comprehensive coverage from price discovery to execution, booking, and risk management.

Central Limit Order Book (CLOB):

• SpectrAxe’s CLOB facilitates all-to-all trading for OTC FX options.
• Enables anonymous trading through FX prime broker (FXPB) relationships.
• Provides transparency into the liquidity available for bid/offer quotes for all trading participants.

Integration with OSTTRA Post-Trade Network:

• Ensures efficient processing of trades.
• Provides real-time trade notifications.
• Automates booking directly into traders’ risk systems, significantly reducing time and complexity.

Technological Advancements:

• FIX protocol for seamless connectivity between SpectrAxe’s trading platform and OSTTRA’s post-trade services.
• Real-time integration with traders’ risk systems, enabling immediate updates and reducing potential errors.

Automation of Post-Trade Workflow:

• Enhances operational efficiency.
• Reduces risk and the potential for errors.
• Addresses the critical need for a streamlined post-trade FX workflow.

Benefits for Traders 

This partnership will offer numerous benefits to traders and investors:

Faster Trade Execution

The integration allows trades to be booked in just 1-2 minutes, compared to the traditional timeframe of several minutes to hours. This speed helps traders and investors act quickly on market opportunities.

Improved Transparency

SpectrAxe’s CLOB provides a transparent view of bid/offer quotes, helping traders and investors make informed decisions by seeing the available liquidity. This transparency is beneficial for assessing market conditions accurately.

Enhanced Efficiency

Automated post-trade processing through OSTTRA reduces manual intervention, lowers the risk of errors, and streamlines the workflow. Traders and investors can rely on accurate and timely trade confirmations.

Increased Liquidity Access

The platform facilitates all-to-all trading. Participants have a wider liquidity pool. It benefits hedge funds, proprietary trading firms, and regional banks looking for better trade opportunities.

Reduced Operational Risk

Real-time integration with risk systems ensures that trades are updated immediately, reducing the chances of discrepancies and operational risk. 

Cost Savings

Automation and efficiency improvements lead to cost reductions in trade execution and management. Lower operational costs provide better margins.

About SpectrAxe

SpectrAxe specialises in over-the-counter (OTC) FX option trading. It operates as a swap execution facility (SEF). SpectrAxe offers a central limit order book (CLOB) for all products listed for trading on its platform. It offers a fully anonymous and transparent trading environment. The platform facilitates all-to-all trading. It enables various market participants, such as hedge funds and regional banks, to trade FX options anonymously and efficiently. 

About OSTTRA

OSTTRA is a joint venture by CME Group and IHS Markit. It provides advanced post-trade solutions for global OTC markets across various asset classes, including interest rates, FX, equity, and credit derivatives. OSTTRA combines the strengths of CME Group’s optimisation businesses (Traiana, TriOptima, and Reset) with IHS Markit’s MarkitSERV. The company aims to streamline and optimise post-trade workflows through innovative technology and comprehensive services. 

Future Outlook

The SpectrAxe and OSTTRA partnership will introduce more innovative features to further enhance the FX options marketplace. Plans include implementing settle-to-market functionality to reduce derivative counterparty exposures.

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