The FX option module is fully integrated with Misys Summit's middle and back office functionality including customisable STP trade lifecycle states, documentation, integration of FX positions into numerous standard reports, and integrated accounting. Clients selecting complete front-to-back instrument solutions experience the best of both worlds: a high-volume, front-office FX options trading system plus integrated STP transaction processing and workflow from front to back office.

The module comes complete with dedicated FX option analytics, reports, pricing models, full control over volatility definitions and smile methodologies, plus many other features

Product coverage

The Misys Summit FX Options module handles a wide variety of FX-based instruments including:

• Vanilla OTC options
• Exotic OTC options including:
  • Single or double barrier
  • Digital options including double and single barrier
  • Digital double knock-ins/knock-outs
  • A range of touch options
  • European barrier
  • Asian / average rate

Exchange-traded futures include:

• Exchange-traded options on FX futures and physicals

Key features

• User definable quick trade entry for high volume trading
• Pricing models – Misys Summit supports the Garman & Kohlhagen and Trinomial Black-Scholes models, and also provides APIs to enable users to plug and play custom analytics and pricing models
• Pricing grid – lets users easily combine standard vanilla options with single barrier exotics for more complex trading strategies. It gives you the added ability to create "what-if" scenarios from real-time data
• Market data – Misys Summit seamlessly integrates real-time feeds from various market data platforms including Reuters and TIBCO. Bespoke feeds can also be defined with Misys Summit APIs
• FX options volatility can be defined using a variety of curve types
• Smiles can be applied depending on the underlying method i.e. vector, correlations or spreads
• Hedging – FX options can be hedged with other instruments. Delta neutral hedging is also supported with volatility and smile risk factors shown separately
• Risk management – Misys Summit includes comprehensive risk functionality for desk level risk ( deltas, thetas, vegas, forward ladders, rho, phi etc) and enterprise level risk liquidity, gap, MtM and VaR analyses
• Real-time P&L decomposition gives you the ability to slice and dice the P&L down to detailed trade level. For example: you can separate the P&L between cash and options trades
• Excel integration – Misys Summit applications can be called from Excel and Excel from Misys Summit
• Full accounting including FAS133 and IAS39 support

Automatic post-trade STP

All post-trade operations including confirmations, payments and reporting can be performed automatically following definable business rules. With most transactions requiring no intervention, action is only required to the trades that produce exceptions.