Reuters adds SuperDerivatives to 3000 Xtra

Reuters has added SuperDerivatives’ currency options pricing system to its 3000 Xtra platform, as part of its efforts to boost its position in the treasury markets.

“Reuters customers now have a one-stop shop for rates and pricing, and can price options much more easily,” said SuperDerivatives chief executive David Gershon. They will be able to access the same features and functions that are available on the SuperDerivatives site, he added, including real-time market price (bid and offer prices) for all classes of options in 50 currency pairs and 80 different types of options and mark-to-market and correlation rates.

SuperDerivatives will also provide updates for 25-delta risk reversal rates for some major currency pairs, initially with intervals of one, three, six or 12-months.

The agreement gives SuperDerivatives access to potentially thousands of Reuters 3000 Xtra subscribers. “Reuters has tens of thousands of users which we would otherwise not be able to reach in such a short time- particularly the smaller corporates and institutions,” said Gershon. SuperDerivatives’ current client base includes Citibank, JP Morgan Chase and Merrill Lynch, among others. “We’ve had success in large banks but this will give us unmatched access to smaller banks all over the world that use Reuters,” said Gershon.

The addition of SuperDerivatives to Reuters comes at a time when accurately marketing derivatives to market is key, due to the upcoming implementation of the IAS 39 in Europe. “We hope this deal will revolutionise the foreign exchange market by allowing almost any forex options participant to access a very advanced pricing system, as well as the hedging and risk management tools that we offer,” said Gershon. “It will facilitate pricing and accurate revaluation of options portfolios because SuperDerivatives’ pricing is based on market prices, rather than theoretical values.”