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 - 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 - Shows large strikes that have traded in the interbank market and may act as magnetic levels for the spot price in the future
• Charts - Graphical illustration of Risk Reversals and Implied vs. Historic Volatility
• Retail Position Ratio - Shows client sentiment (bullish/bearish), based on actual client positions
• Current FX Options Board Prices - 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, says: "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."