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GFI launches forex option pricing tool

New York-based inter-dealer broker GFI has launched a foreign exchange options trading technology that will help its sell-side clients provide pricing and trading tools to the buy side.

The new technology is based on GFI’s system for pricing, analyzing and managing forex positions, called Fenics FX. With the new product, Fenics dealFX, clients will be able to create proprietary internet sites for the pricing and trading of forex options.

According to GFI, investment banks will be able to integrate the product with their existing internal processing systems and feeds. So, for example, they will be able to embed their own mathematical models and use their own market data for options pricing and calculation of volatility surfaces with the system.

“Banks do not want to offer the off-the-shelf e-commerce solutions to their end-users,” said Steve McMillan, senior managing director for Europe at GFI. One major US bank has already licensed the system, according to GFI.

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