Following successful launch, Tradition-ICAP’s Vol-Fix extends capabilities

Publication date: 19 March 2012

After a successful launch and positive market reaction, Tradition-ICAP has announced the extension of its daily Volatility Fixing service. The expansion of the existing service will see six new currency pairs added: GBPUSD, USDJPY, AUDUSD, EURJPY, EURGBP and USDCAD.

Tradition-ICAP believes that a fix designed with input from the market will establish a greater level of certainty and assurance in volatility trading, allowing the creation of additional products and services. The Tradition-ICAP Vol-Fix establishes a dependable and independent fixing rate, derived from trades and market rates recorded between 3.50pm and 4pm on the Volbroker platform.

Terry Benson, Global Head of Business Development, Tradition‐ICAP, said: “The addition of these six currency pairs to Vol-Fix is a continuing process in the evolution of the product. It is the direct result of positive reaction from the market following the launch of Vol-Fix.”

Damian Zihlmann, Portfolio Manager, Quaesta Capitals, added: “Tradition-ICAP’s effort to establish a solid FX volatility fixing in major currency pairs can be seen as a milestone for the popularity and standardisation of more advanced volatility products. This is a huge step forward that will ultimately allow market participants to effectively apply pure volatility trading strategies without the potential pitfalls of delta and gamma hedging. We, as fund manager for v-Pro, Quaesta Capitals’ FX volatility programme, welcome and support Tradition-ICAP’s endeavours.”