Manage market risk in FX option portfolios with greater speed and efficiency
Market Risk Optimisation is a risk-based, customisable service which enables traders to trade market risk, access increased liquidity, and reduce transaction costs in the FX option market.
Traders input the necessary trade and risk details, and the optimisation produces a proposal of matched market risk across the multilateral network. Built for speed and efficiency – the frequently run optimisation process aims to complete within 30 minutes.
With connectivity to FXall – LSEG’s FX trading platform – for execution, Market Risk Optimisation enables a straight-through, low touch process for option traders while facilitating regulatory compliance.
How it works
Market Risk Optimisation in action
Submit & validate data
Traders submit their trade and risk data to our client portal directly or via API.
Identify optimisation opportunities
Our algorithms optimise the submissions and aim to produce a proposal of matched market risk within 30 minutes, facilitating best execution.
Accept & execute
The proposal is validated and accepted by each trader and executed via FXall’s MTF/ SEF, with STP directly to the trader’s book.
Service Scope
Market Risk Optimisation is designed to support a broad range of currency pairs across the FX option market.
Features & benefits
Key Features
By optimising market risk for FX options, Market Risk Optimisation offers several key benefits to clients, both operationally and financially:
Market Risk Optimisation’s risk-based and customisable approach enables more effective risk management and optimised trading outcomes for the FX option market.
The multilateral network unlocks a broader set of trading opportunities by enabling synergies to be identified across the network, increasing access to liquidity within the FX option market.
Due to its execution-agnostic algorithm, Market Risk Optimisation does not prioritise certain trades or counterparties in the way a traditional broker might.
The rapid and low touch process enables traders to streamline the way they manage exposures with greater efficiency.
Traders retain full control over their trade submissions, and there is no information transfer within the network or to the outside market.
Frequent optimisation runs enable greater responsiveness to market conditions, helping traders manage risk more effectively.
Post Trade Solutions’ Market Risk Optimisation service enables traders to focus on their overall risk profile and communicate trading intentions in terms of risk, while we find the optimal trade configuration that puts them, and the rest of the multilateral network, into their desired risk position at the best price.
Esben Urbak
Driving the derivatives industry forward
We offer more than just Market Risk Optimisation. Find out how we can optimise your portfolio.
Insights
Stay up to date with Insights from Post Trade Solutions
Unique insights, commentary and analysis on the major trends shaping financial markets.
Request details
Want to find out more about our products? Our sales team can provide help and expertise with your queries
Help & support
Already a customer?
Contact LSEG near you
Our compression and optimisation services are delivered by Quantile. View Quantile regulatory information.
FCA Regulatory Disclosure: View Quantile’s optimisation volumes.