Foreign Exchange Contact Group Summary

Short Description
the e-FX options market. Interestingly, option trading through voice … trading. Currently e-trading is around 20 percent of overall FX option turnover. …

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Content
Foreign Exchange Contact Group
Frankfurt, Wednesday 4 September 2007
S U M M A R Y O F T H E D I S C U S S I O N
1. Review of market developments
The Group reviewed and discussed the latest trends in financial markets, particularly in FX markets, following the presentation made by Juan Garcia, Head of Currency Research at BBVA.
2. Retail FX margin trading in 2007
Hjalmar Schr?er, Head of pricing and e-commerce at UBS presented an overview of the retail FX business, which is growing at about 30% per year. In Asia particularly, retail FX margin trading is very popular. Retail Aggregators, acting as intermediary between retail clients and larger foreign exchange dealers have brought the FX asset class within the reach of retail clients, with very competitive bid-to-offer spreads. The pioneers of Retail FX firms are independent and have quickly built a credible offering in a segment, which has remained outside the scope of traditional banks’ coverage. One of the key features of the retail FX margin trading offer is an integrated workbench for dealing with limit orders, online news, charting facilities, profit and loss overview, etc. The platforms often…

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