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.
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.
End-to-End Service:
Comprehensive coverage from price discovery to execution, booking, and risk management.
Central Limit Order Book (CLOB):
Integration with OSTTRA Post-Trade Network:
Technological Advancements:
Automation of Post-Trade Workflow:
This partnership will offer numerous benefits to traders and investors:
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.
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.
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.
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.
Real-time integration with risk systems ensures that trades are updated immediately, reducing the chances of discrepancies and operational risk.
Automation and efficiency improvements lead to cost reductions in trade execution and management. Lower operational costs provide better margins.
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.
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.
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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