Trading Tech Vendor ORE Extends Fenics FX Data Deal

ORE began using Fenics a year ago on an exploratory basis, but has renewed its contract for the vendor's composite feed of FX options data, which covers more than 140 currency pairs, as well as risk reversals and at-the-money rates. Fenics derives the data from its option pricing, risk management, and lifecycle management software, and delivers the data to ORE in real time, via its proprietary Fenics XML API.

Rather than display the data on its web, mobile and MetaTrader4 platforms, ORE will use the data to inform risk and quant modeling, as well as back-end functions of its platforms, says Diego Cruz, head of market data sales at Fenics. "They tried and tested the data, and liked how they get the data, and they have proven a reliable partner for Fenics over last 12 months," he says.

Cruz declines to give details of ORE's specific use case, but says "Brokers tend to create a web GUI that allows their customers to trade FX options.... The data gives them the ability to create the right barriers or limit orders, and have the right type of knowledge... to set limits for their retail customers... from which they can trade."

Indeed, ORE's customer base is comprised primarily of FX and credit default swap brokers and retail banks, which are looking to trade vanilla options. "Our philosophy is simple: create a great product, and traders will use it," says Zoe Fiddes, head of sales at ORE, in a statement. "We focus on making options trading simple and accessible. We renewed and extended our agreement with Fenics because its FX option volatility data allows us to offer a stronger product to our customers, and Fenics' data offers us a deeper view of the market which provides great value to traders," she adds.

In the past, Fenics has focused on delivering its market data and analytics to valuations or risk management teams in banks serving the institutional markets, but in response to recent growth in the FX retail trading industry, is now also targeting retail banks and brokers. "Here in Europe, the FX retail space has been growing over the years. FX is a good way to trade, as any gains you make in FX are free of capital gains tax, which isn't always the case in equities and other asset classes. So we are reaching out to companies who are setting up portals and getting more awareness in the facilitator space," Cruz says.