Corporates fear move to platform trading for forex options

Despite being exempt from clearing and exchange trading requirements in the US and Europe, some corporate treasurers fear they might have little choice but to execute forex options on electronic platforms

The ability of companies to use exotic forex options as part of their hedging strategies when new regulation comes into force remains uncertain, as corporate treasurers contemplate the implementation of trading and clearing reforms next year.

Bespoke options form an important part of some hedging strategies, but are often executed by phone to allow for the appropriate level of structuring, treasurers claim. While the Group of 20 commitments require only that standardised over-the-counter