Tradition-ICAP Debuts VolCall for OTC FX Options

VolCall works on a request-for-quote system, combining electronic trading practices with traditional voice broking techniques. The system has a three-step process that allows for dealing on displayed liquidity, and countering offers on specific interests. First is a five-minute price making period, where prices are ranked by level rather than timestamp. Next is a two-minute period of price adjustment, where the market maker can alter based on market prices, and third is a 30-second dealing phase.

"Our belief is that VolCall meets, head on, the ever increasing pressure faced by our clients to reduce their variable costs by lowering the cost of execution for FX Options in the interbank arena," says Terry Benson, group COO at Tradition-ICAP. "VolCall represents a market first that we believe will help to change the way OTC FX options are traded. The regulatory environment is increasingly calling for more transparency and efficiency. VolCall meets this challenge and brings the solution to market."

VolCall will be rolled out to existing Volbroker clients after beta testing, and is available through Tradition-ICAP's existing graphical user interface (GUI), or through existing FIX connections for market data.