SpectrAxe, the pioneering central limit order book (CLOB) for over-the-counter (OTC) FX options, is partnering with OSTTRA, a leading provider of post-trade solutions, to offer a comprehensive end-to-end service from price discovery through to execution, booking, and risk management in the FX options market.
This collaboration combines SpectrAxe’s price discovery and execution CLOB with OSTTRA’s extensive post-trade network, enabling seamless automation of the entire trading process. Traditionally, the booking of trades could take anywhere between several minutes and, in some cases, hours, but now this process can be complete in just one or two minutes.
SpectrAxe is the first and only electronic CLOB trading platform that facilitates all-to-all trading for OTC FX options, allowing hedge funds, proprietary trading firms, regional banks, and market makers to trade anonymously via their FX prime broker (FXPB) relationships on a lit marketplace, offering transparency into the liquidity available for bid/offer quotes for all trading participants. This innovation allows the industry to move away from its traditional reliance on voice- and chat-based execution, or single-dealer platforms.
By connecting to the OSTTRA FX trade processing network, traders on SpectrAxe’s platform will benefit from real-time trade notifications booked directly into their risk systems, addressing the critical need for automating the post-trade FX workflow as market participants continue to seek greater cost reductions and transparency. SpectrAxe has integrated FIX protocol with OSTTRA to ensure seamless connectivity and efficiency.
Alvin Chopra, Chief Operating Officer at SpectrAxe, commented: "Our partnership with OSTTRA marks a significant milestone in the FX options market. By combining our price discovery and execution capabilities with OSTTRA’s robust post-trade solutions, we are setting a new standard for efficiency and transparency. This end-to-end service reduces the complexity and time traditionally associated with trade booking and risk management, offering unparalleled benefits to our clients."
Patrick Philpott, Product Design Lead, FX & Securities at OSTTRA, added: "We are thrilled to collaborate with SpectrAxe to bring this groundbreaking solution to the market. Automating the post-trade workflow is crucial for enhancing operational efficiency and reducing risk. Our combined expertise provides market participants with a streamlined, automated process that not only saves time but also significantly reduces the potential for errors."
The integration of SpectrAxe’s CLOB with the OSTTRA post-trade network underscores the commitment of both firms to innovate and drive efficiency in the FX options market.